Brian Sengson, DiAndria Green and David Greenberg, advisors within Bennett Thrasher’s State and Local Tax group, were recently published in the Fall edition of Mercer Law Review’s Annual Survey of Georgia Law. Their article, State & Local Taxation: A Two Year Survey, summarizes the most critical and comprehensive changes to Georgia tax law from June 2017 to May 2019.
Of note, the article addresses Georgia’s sales tax economic nexus law in response to the U.S. Supreme Court’s Wayfair decision. The state adopted its original $250,000 gross receipts economic nexus threshold January 1, 2019, but later lowered the threshold to $100,000 effective January 1, 2020. Additionally, the article assesses Georgia’s conformity and decoupling from specific provisions of the Tax Cuts and Jobs Act of 2017, which introduced significant Georgia tax reform with respect to business income deductions for passthroughs pursuant to I.R.C. 199A, state and local tax deduction limitations and specific depreciation modifications. Lastly, the article details the polarizing Georgia Tax Tribunal decision Sewon America, Inc. v. Commissioner, where the Tribunal made the controversial decision to deviate from state norm by citing federal common law to interpret Georgia’s tax regulation. Notably, Bennett Thrasher’s own Peter Stathopoulos represented Sewon America, Inc. before the Tax Tribunal.
In addition to the aforementioned topics, the article discusses various Georgia state tax credits, the data center sales tax exemption, as well as the New Cingular Wireless Georgia Superior Court decision.