Amazon begins collecting sales tax in three additional states

By on January 2, 2014, 7:15 AM
amazon, sales tax, nevada, indiana, tennessee

Amazon on Wednesday started collecting sales tax from shoppers in Indiana, Nevada and Tennessee. State officials said the changes are expected to generate an extra $50 million per year collectively.

The addition of the three states brings the total number of states in which the online merchant collects sales tax in to 19. While that’s less than half of the total number of states in the US, the 19 states have a combined population of 180 million – or more than half of all US residents.

Amazon for years has fought against the idea of collecting sales tax from their customers. Those making big ticket purchases can save a lot of money by ordering from Amazon versus buying local simply because sales tax isn’t collected at the time of purchase. It’s an advantage that many brick and mortar stores feel is unfair, however.

But as Amazon continues to expand operations across the country, they’ve had to make compromises on the sales tax front. Most state laws dictate that a retailer must collect sales tax only if they have a physical presence in said state.

In the case of Tennessee, the fact that Amazon is building two new warehouses mandates the change. Amazon is now collecting sales tax in the other two states to settle longstanding disputes with state officials.

The next state on the list for sales tax collection is South Carolina although that won’t begin until 2016.




User Comments: 6

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9Nails, TechSpot Paladin, said:

Taxes are an unfortunate necessity of living in a community. We would wish that they didn't exist so that our money could truly be our money, and spent as we desired. But taxes do help the community to some small degree. It would be nice if the tax system was unified and predictable. Or perhaps I'm dreaming of Utopia again?

If I were the States I wouldn't start spending their anticipated money just yet. Never underestimate a citizens desire not to pay taxes. They will likely find some other way to purchase goods without the burden of the added expense.

1 person liked this | Guest said:

With government there is no extra 50 million a year. The states will get the 50 million and spend 150 million. Then the government will say they are broke again.

1 person liked this | EClyde EClyde said:

Glad it ain't my state and NO they are not an unfortunate necessity of living in a community. Sheeesh !

tipstir tipstir, TS Ambassador, said:

Amazon has to charge it or take a loss in it's profits.

Guest said:

How amazon got away with this for as long as they did having a huge physical presence in Indiana is truly remarkable. No other business could have done so, except one that folded its doors before the state came a knockin'

tipstir tipstir, TS Ambassador, said:

How amazon got away with this for as long as they did having a huge physical presence in Indiana is truly remarkable. No other business could have done so, except one that folded its doors before the state came a knockin'

I was up in New England and Amazon and HSN never charged me tax. Only QVC did. Now back in South Florida area all of them charge me tax. Amazon starting too on some items. Since I got rid of Prime I can have more control over seeing what else I was being charge for. States like NV and NH don't collect tax on goods. So you walk into Walmart and say that HDTV was $150 that's all you pay is $150. I had a shopping spre when I was working in NH on project. Saved a lot of money not paying tax.

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