(WTXL) - You could be paying more for your next online order in Georgia.
A new law that took effect Tuesday adds the state sales tax to online orders.
Zach Logan gives us a look at how the new tax will help the state with lost revenue.
Lawmakers say it's about creating fair competition.
Why would customers buy a product in store when they can buy the same exact item in front of their computer and avoid the sales tax?
Those with the state say they've been waiting several years to make this change.
Take a look at the new internet sales tax for purchases made in Georgia.
The law states online retailers that bring in at least $250,000 in sales or complete 200 individual sales transactions must collect a state sales tax.
Or they must send out tax due notices to their customers who have spent more than 500 dollars on their websites.
The state says with online shopping becoming so popular, state and local governments are missing out on much needed revenue generated by the sales tax.
By creating this new law, the state expects to see an additional $500 million to $600 million a year.
"The tax revenue goes into the general fund. It will generate a whole lot locally. People forget that the fifth sales tax penny reduces property taxes. If that gets eaten into because people aren't paying the sales tax, then there's no other way to get it then through property tax."
In order to keep the competition fair in other fields, lawmakers say they're also considering implementing taxes on ride share services and temporary vacation rentals.
Now don't get too comfortable with this new tax.
Like any new law, lawmakers are expected to make some changes to it during this upcoming legislative session which begins on January 14.
