Amazon Starts Collection of Sales Tax in Indiana, Nevada, and Tennessee
The New Year ushered in bad news for online shoppers particularly those in the states of Indiana, Nevada, and Tennessee. That is because online shoppers living in those states are now required to pay sales tax in each online purchase they make specifically on Amazon.com.
The online retailer started in January 1 the collection of sales tax in every order in those three states. Thus, Amazon now collects those levies in a total of 19 states. Many online shoppers are concerned that more states could possibly follow suit soon.
Officials from those states now expect to collect new levies that would amount to over $50 million on an annual basis. That would surely be good news to them, but it would also be bad news for online customers.
Imposing online purchase taxes
Technically, online customers are supposed to file reports on their Web purchases. They are required to shoulder taxes on those goods. However, it is not surprising that most online shoppers rarely file for those taxes. This is the reason some states have decided to impose the taxes upon purchases to make sure all levies would be strictly collected.
For many years now, Amazon has been opposing the measure to collect sales tax. It has already called on several federal agencies to soon decide on this pressing issue. Apparently, the company is yet to gain responses from those bureaus. Amazon also refused to further comment on this concern.
In 2008, lawmakers in New York approved a proposed budget package that required and forces online shops like Amazon to generate sales tax from customers. The company immediately filed a lawsuit in the Manhattan Supreme Court to oppose that measure.
The case was taken all the way to the Supreme Court, Unfortunately, the High Court refused to hear the lawsuit. Thus, Amazon lost that battle and started collecting sales tax in the state. Other states had since followed suit.
It would not be surprising if other states in the country soon follow the move. Currently, Amazon is set to begin imposing taxes in 2016 on purchases made in South Carolina. Just last year, the company reached an agreement in Florida to subject its customers to necessary sales tax collection. Amazon is yet to disclose when that deal would take effect. Each state has its very own set of taxation policies covering online purchases.