HB 279: Sales and use tax; change certain definitions

Georgia's sales and use tax law (O.C.G.A. § 48-8-2) currently defines what counts as a "business" for tax purposes. House Bill 279 replaces that definition with new wording: a business is any activity engaged in, or caused to be engaged in, by any person with the object of direct or indirect gain, benefit, or advantage. The bill does not change tax rates, exemptions, or filing procedures elsewhere in the sales and use tax chapter. It only touches this one definition. If the Governor signs it, or if it becomes law without a signature, the new definition takes effect immediately. All other state laws that conflict with the change would be repealed.

• Rewrites paragraph (4) of Georgia's sales and use tax definitions (O.C.G.A. § 48-8-2) to redefine the term "business."
• Sets the new definition as any activity a person engages in, or causes to be engaged in, for direct or indirect gain, benefit, or advantage.
• Leaves the rest of the sales and use tax chapter, including rates and exemptions, unchanged.
• Takes effect as soon as the Governor signs it or it otherwise becomes law without a signature.
• Repeals any existing state laws that conflict with the revised definition.

Anyone or any entity whose activities could be classified as a "business" under Georgia's sales and use tax law, including retailers, service providers, and other sellers who collect and remit sales tax, along with the Georgia Department of Revenue, which enforces this definition.

Because the definition of "business" determines who must collect and remit sales tax, changing its wording could affect which activities or individuals are treated as taxable businesses under Georgia law, even though the bill's practical scope is narrow and limited to this one definition.

• Section 1 revises paragraph (4) of O.C.G.A. § 48-8-2 to redefine "business" as any activity engaged in, or caused to be engaged in, by any person for direct or indirect gain, benefit, or advantage.
• Section 2 sets the effective date as the date the Governor signs the bill or the date it becomes law without a signature.
• Section 3 repeals any existing laws that conflict with the new definition.

1. 2025-02-10House Second Readers (House)
2. 2025-02-06House First Readers (House)
3. 2025-02-05House Hopper (House)

• Charles Martin (R, HD-049)Primary sponsor
• Shaw Blackmon (R, HD-146)
• Trey Kelley (R, HD-016)
• Vance Smith (R, HD-138)
• Clint Crowe (R, HD-118)
• Bruce Williamson (R, HD-112)

• sales tax
• tax definitions
• Georgia tax law
• business regulation