HB 280: Sales and use tax; change certain definitions

Georgia's sales and use tax law (O.C.G.A. § 48-8-2) defines key terms used to decide who must collect and pay sales tax. This bill rewrites the definition of 'business' in that section. Under the new wording, 'business' means any activity engaged in by any person, 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 revises this one definition. If enacted, the change would take effect immediately upon the Governor's signature or upon becoming law without a signature, and any laws that conflict with the new definition would be repealed.

• Rewrites the definition of 'business' in Georgia's sales and use tax law (O.C.G.A. § 48-8-2), which governs who may be subject to sales tax collection duties.
• Defines 'business' broadly as any activity engaged in, or caused to be engaged in, by any person for direct or indirect gain, benefit, or advantage.
• Sets the effective date as immediately upon the Governor's signature or upon the bill becoming law without signature.
• Repeals any existing Georgia laws that conflict with the revised definition.

Businesses and individuals engaged in commercial activity in Georgia, the Georgia Department of Revenue, which administers sales and use tax collection, and any person whose activities might newly fall inside or outside the legal definition of 'business' for tax purposes.

Because the definition of 'business' determines who must register, collect, and remit sales tax, even a small wording change can affect which activities or individuals are treated as subject to Georgia's sales and use tax rules in day-to-day tax administration.

• Section 1 amends Code Section 48-8-2 by revising paragraph (4), the definition of 'business,' to mean any activity engaged in, or caused to be engaged in, for direct or indirect gain, benefit, or advantage.
• Section 2 makes the law effective immediately upon the Governor's approval or upon becoming law without approval.
• Section 3 repeals any conflicting laws.

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)
• Vance Smith (R, HD-138)
• Trey Kelley (R, HD-016)
• Clint Crowe (R, HD-118)
• Bruce Williamson (R, HD-112)

• sales tax
• use tax
• tax definitions
• Georgia tax law