As of January 1, Amazon.com started collecting state sales tax from customers who live in Indiana, Nevada and Tennessee.
Amazon collects sales tax for 19 states in total, including Arizona, California, Connecticut, Georgia, Kansas, Kentucky, Massachusetts, New Jersey, New York, North Dakota, Pennsylvania, Texas, Virginia, Washington, West Virginia and Wisconsin.
In the past, Amazon fought states in courts about sales tax because selling products to customers without a sales tax requirement or “tax free” gave it an advantage over its brick-and-mortar competitors in revenues in those states.
Most states with sales tax have an honor system in place regarding tax collection. They require residents who don’t pay sales tax through online retailers or in other states to come forward on their own and supply the excise tax from sales and use directly to their home state.
A lot of consumers are unaware of this system or don’t want to pay the tax and ignore it. Many states don’t follow-up or issue fines when this happens.
Amazon though has planned to increase its U.S. warehouse and infrastructure and needs state approval to build. By accepting sales tax for those states, Amazon faces fewer problems expanding its warehouse network.
3 states amazon sales tax
Amazon Collecting Sales Tax in 3 More States