Georgia has enacted legislation that decreases the withholding requirement for general and prime contractors entering into contracts with nonresident subcontractors from 4% to 2%. Effective July 1, 2012, the withholding requirement is 2% of the payments due the nonresident subcontractor in satisfaction of any sales or use tax owed to Georgia. The withholding is required when a contract between a prime or general contractor and a nonresident subcontractor involves a project of $250,000 or greater. If the prime or general contractor fails to withhold the required amount, that contractor becomes liable for any sales or use tax that the nonresident subcontractor owes to Georgia. (H.B. 932, Laws 2012, effective as noted)