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Proposed sales tax bill could help local businesses but potentially raise online costs

Online shoppers say state sales tax on online retailers would only raise prices

The Georgia Legislature is considering a bill that local businesses say would level the playing field with online retailers.

But online shoppers aren't necessarily in favor of it.

Gottwals Books has been selling hardcover and paperback books since March 2007.

Owner Shane Gottwals says their business is up against the internet.

“Our number one competition is online retailing, so it's just known that you can often not pay sales tax on things that you buy online. That's starting to change... a lot of states are moving that way, the things we sell online, there's a lot of states we have to remit sales tax to,” Gottwals said.

It’s why he supports House Bill 61.

Gottwals Books on Russell Parkway

“We can get tax revenue from North Carolina, or wherever it might be, it is only a good thing. Let them pay to build our bridges and pay for our government,” Gottwals said.

The bill, which has only passed the state House, would make all online retailers who do more than $250,000 worth of business or make 200 sales in a calendar year in Georgia collect the state's sales tax.

Right now, only online retailers that have a physical location in Georgia have to collect the tax when Georgia shoppers use their websites.

Robins Regional Chamber President and CEO April Bragg says it's good for local business.

“What the legislation would do is basically make the same rules apply to businesses regardless of their location and not disincentivize people from buying products and services here in our state,” Bragg said.

But the online shoppers aren't convinced.

Michelle Statzer shops online for work and fun about once a week and says the whole point is lower prices.

“I have friends who own businesses, so in that aspect I understand that it does hurt them, but I guess in the end it's all about saving a dollar or two so you can get more products,” Statzer said.

Other online shoppers 13WMAZ spoke with on Wednesday said the idea was not popular with them.

So far, the Senate has read it twice, but not voted.

The Georgia state sales tax is four percent.

You can read House Bill 61 here.

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