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Amazon Sales Tax Laws Expand to Three More States

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[ eCommerce]

Consumers in Indiana, Nevada and Tennessee will no longer get a free pass on sales tax when shopping on Amazon.com. Starting today, residents in those states will join the 16 other states in the country that automatically pay tax on Amazon purchases. South Carolina is not far behind, consumers in the Palmetto State, will begin paying taxes on all purchases from the monster online retailer starting in 2016.

The three new state additions are expected to generate about $50 million a year in tax dollars. Amazon tried and failed to keep sales tax laws from expanding. Their argument has always been that since they are not a “brick and mortar” retailer, but instead an online presence, consumers who shop with them should not have to pay a state sales tax. In fact, that’s always been a huge advantage for Amazon. However, the company’s competitors brought their battle to court in an effort to try and keep up with the retail juggernaut.

This past December, the U.S. Supreme Court declined to hear Amazon’s appeal regarding a New York court ruling that required the retailer to collect sales tax in the state. That ruling will most likely serve as a precedent for future rulings. In other words, if you live in one of the 30 states where you currently are not required to pay a sales tax on Amazon.com purchases, enjoy it while you can.

Amazon’s strategy has always been about offering price-advantages for their customers. Sales tax varies from state to state, residents in Indiana and Tennessee pay a 7% sales tax. Residents in Nevada pay a 6.85% sales tax. However, do not think for a single second that Amazon is not finding new ways to differentiate its product and keep consumers coming back. Want same day delivery? How about Sunday delivery? How about delivery via drone? It’s all in the works as the retail giant keeps finding advantages in every possible nook and cranny imaginable.

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Amazon Sales Tax Laws Expand to Three More States
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  • Marlon Dickson

    Beautiful! This will give us “brick and mortar” stores more needed HELP! Plus provide these states more income. Keep adding more states.

    • Jeff Melvin

      Wow. At first I thought this was obvious sarcasm. But now, there really are people out there this stupid. Shame really.

    • power4things

      Now if we can just get “brick-and-mortar” stores to sell something people want – and figure out how to give you “service” while you’re there.

  • FreedomFirst

    Boo! This is the last thing working families need to hear. It’s a total rip off for these states to collect sales tax when they were not involved in the transaction in any way.

    7% tax for WHAT? because they are greedy and want money for nothing. And to think, this country got started because we didn’t want to pay a half percent tax on tea.
    7%! what a rip.

    • ONECJ2

      I like what you said about how this country got started and DIDN’T want to pay ANY TAXES but now that is all we hear. TAX INCREASE!

  • DL

    More taxes means less money in the hands of the workers and more money in the hands of the wasters.

  • http://yahoo.com gym

    Thanks obama, reid and stretch pelosi now that you’ve totally phfuucckked the country

    • Brian

      And they control state tax collection how???

    • Al

      I think you got them confused with Bush. The country was getting phuuucked long before Obama!

  • Pat

    U.S. Constitution, Article 1, Section 9, Paragraph 5, “No tax or duty shall be laid on articles exported from any state”. First, to require Amazon to collect these taxes is against the law for sales outside the state that the products are being shipped from. Secondly, the states are in direct violation of the U.S. Constitution for making this demand. Many people who live in states that have a sales tax that border states that do not, regularly travel to the non-sales tax state to make purchases at a reduced price. What todays politicians tend to forget is what one of the major factors that caused the revolutionary war, OVER TAXATION!! And we all know what happened to the King and his Redcoats now don’t we. Wake up politicians, We The People are fed up with your crap. “Keep your powder dry boys, ya never know when your gonna need it”.

  • JR

    I could understand better if Amazon directly used the roads and services of a b&m store, but they don’t.

  • Gypsy

    It is way past time for US residents to fight the constant increase of taxes on every aspect of life in this country, but unfortunately most people don’t really care that the USA has been circling the drain for the past 6 years, otherwise we’d be having a major TAX REVOLT right this very minute. You all do a lot of complaining but nobody steps up to the plate to try to do anything about it (except those “nasty” Tea Party folks that all of you have tried to give a bad name to.) It may be “unconstitutional” for these taxes to be collected but until YOU THE CITIZENS stand up and shout “ENOUGH!!!” and refuse to pay more, nobody is going to listen to you. And you’re all too chicken to do anything but whine about it.

    • Al

      What the h*ll do think “Occupy Wallstreet” was all about?? Many brave protestors held their ground for a long time to bring attention to the rampant greed in this country held by a VERY small percentage. NOT the “rich”, but the “super rich”, the ones you never hear about, that pull all the strings. Those protesters endured pepper spray in the eyes, beatings, arrests, etc. All that to try and make a difference in the standard of living for the average worker in this country, that are losing their homes, maybe working two jobs and still can’t get by. While the mega rich are hording and cutting deals for tax payers to bail them out. they are all laughing at us, looking at us like we’re little ants of no significance.

    • Al

      What the h*ll do think “Occupy Wallstreet” was all about?? Many brave protestors held their ground for a long time to bring attention to the rampant greed in this country held by a VERY small percentage. NOT the “rich”, but the “super rich”, the ones you never hear about, that pull all the strings. Those protesters endured pepper spray in the eyes, beatings, arrests, etc. All that to try and make a difference in the standard of living for the average worker in this country, that are losing their homes, maybe working two jobs and still can’t get by. While the mega rich are hoarding and cutting deals for tax payers to bail them out.

  • Russell Davison

    Those of you not paying sales tax to Amazon might want to reread your income tax instructions. There may be a state requirement to report online purchases where state sales tax was not collected. You could still be responsible for it. Only it’s on YOU to report it on your income tax form. Not reporting it could result in extra penalties when your state finds out. And some do pursue these lost revenues aggressively. Better to pay at time of sale maybe.

  • Gordon

    My biggest gripe is the fact that local businesses do not carry everything I want to buy. In this age of high gas prices, it does not pay to drive around to stores looking for things. Don’t even think about calling around because clueless store clerks have no idea what you’re talking about. Hence, I opt to shop on the internet. Sometimes, when I find what I am looking for, it is on a site that has a local store where I can pick up the item (my first choice). Most of the time it is an out of state business, so I end up paying for the item plus shipping charges. Then the local stores whine that they are losing business to the internet. Boo Hoo! If they carried what I want to buy, I wouldn’t be going to the internet. Price differences and sales taxes be damned! They are not driving me to the internet so much as lack of product. QUITCHERBITCHIN and stock what your customers are looking for!

  • http://www.saviourgreenarch.net.in Angelina

    Only it’s on YOU to report it on your income tax form. Not reporting it could result in extra penalties when your state finds out. And some do pursue these lost revenues aggressively. Better to pay at time of sale maybe.
    thanks..!!

  • Hmmmm

    Why is Pres. Obama brought into EVERY discussion online? Blame Congress.

  • saviour Green Arch

    great bpost..thanks for the post..!!

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