Georgia SB10: What Retail Owners Need to Know About Tax Changes

Most Georgia retail owners don't realize that SB10 contains a provision that will directly affect how they collect and remit local sales taxes. The surprise: the bill mandates an automatic, immediate end to one local sales tax the day before another begins in the same county.

Here's what's happening.

The Provision: FLOST Ends, LHOST Begins—No Overlap

Under Section 1 of SB10 (new Code Section 48-8-109.43, found on pages 1–2, lines 15–19), any existing special district option sales and use tax—commonly called FLOST—automatically ceases to be imposed and levied immediately prior to the imposition of any local homestead option sales tax (LHOST) in the same county or conterminous special district.

In plain English: when a county switches from FLOST to LHOST, the old tax stops the day before the new one starts. There is no period where both taxes are collected simultaneously.

Why This Matters to Your Business

FLOST and LHOST are both collected at the point of sale by retailers. Your register rings up the sale, you collect the tax, and you remit it to the state or county on a schedule. The difference between the two taxes is significant—they have different bases, different rates, and different rules about what's taxable.

Because SB10 mandates that FLOST terminates immediately before LHOST begins, retailers cannot have a grace period or overlap. The moment LHOST takes effect in your county, FLOST is gone. This means:

• Your point-of-sale system must be reprogrammed to stop collecting FLOST and start collecting LHOST on the correct dates.
• Your tax remittance process—what you send to the state or county and when—changes.
• Any miscalculation during the transition could result in either under-collection or over-collection of tax, both of which create compliance problems.

Small retailers who manage their own tax compliance, or who rely on older POS systems, face particular risk. A single-day error in when you switch from one tax to the other could cascade into incorrect filings.

Timeline and Effective Date

SB10 becomes effective upon the Governor's approval or upon becoming law without approval. The provision itself takes effect immediately upon that date, meaning the automatic termination rule is in force now.

The actual transition from FLOST to LHOST in your county will depend on when your county or special district implements LHOST. You should confirm the exact effective date with your county tax assessor or the Georgia Department of Revenue, since the timing varies by jurisdiction.

What to Do Now

If your county is planning to adopt LHOST, contact your POS vendor or tax compliance provider immediately. Confirm that your system can handle the switch and that the transition date is programmed correctly. Review your tax remittance schedule and notify your accountant or bookkeeper of the change.

The Georgia Retail Association and the Department of Revenue have published guidance on LHOST implementation. Your local chamber of commerce may also have county-specific resources available.

For a detailed, business-specific summary of SB10's tax provisions, contact your trade association or the Georgia Department of Revenue.