Amazon Sales Tax Collection Goes Nationwide April 1st, No Fooling
- Author: Zachary Reyes Mar 27, 2017,
Mar 27, 2017, 6:51
Starting April 1st, Amazon will collect a sales tax in all 45 states that have one, with Hawaii, Idaho, Maine, and New Mexico being the last four to be included. States have been pressuring Amazon (and other online retailers) to collect a sales tax, and little by little Amazon has conceded. Initially this didn't prove to be a significant threat to traditional stores but, as online sales grew, the number of complaints regarding the advantage online stores presented increased. Starting next month, Amazon will start collecting sales tax nationwide, in all of those states that have a state sales tax.
"To avoid collecting taxes, Amazon has historically relied on another high court ruling that predates the era of online shopping". Consumers are supposed to declare their Use Tax and remit payment to the State, but in reality hardly anyone bothers. Considerably. With plans in place to enter the brick and mortar space, Amazon has finally chose to forgo its prolonged sales tax holiday.
Amazon first began relenting on the sales tax issue when it began opening fulfillment and data centers around the country to speed up shipping times and build out a more robust physical network.
However, Amazon's move leaves many online retailers still not charging sales tax, which brick-and-mortar retailers have long argued is a major competitive headwind. "Maine businesses can go toe-to-toe with the very best out -of-state companies, provided they are competing on an equal playing field", George Gervais, commissioner of the Maine Department of Economic and Community Development, said in a statement. There will be just five USA states where you'll be able to buy tax free from Amazon Retail - Alaska, Delaware, Oregon, Montana and New Hampshire don't levy a Sales Tax.
"Today's decision by Amazon is welcome news to ME retailers and consumers", he said.