Amazon Sales Tax Laws Expand To Tennessee, Indiana And Nevada
ByThree states have joined the growing list of states being charged sales tax on Amazon purchases in an effort to boost state revenue, The Verge reported.
The law, which took effect on Jan. 1, will no longer give residents in Tennessee, Indiana and Nevada a free pass on sales tax when shopping on Amazon.com. The online retailer already collects tax in 16 states, and in 2016, South Carolina will join them, bringing the number up to an even 20, The Verge reported.
The three new states could generate about $50 million a year in tax dollars.
Nashville, Tenn. Resident Emily Lilley told the Associated Press she is a frequent Amazon shopper and doesn't mind the new law because of the substantial revenue if could bring to the state.
"It seems fair when I buy something in a store I pay sales tax, and so if I'm buying something online ... it seems fair to pay sales tax there too," she said. "And I know the state can use more revenue."
WebProNews reported that these new additions did not occur without a strong pushback from Amazon and other online retailers. Amazon argued that since it is not a "brick and mortar" retailer, but instead an online presence, consumers should not have to pay a state sales tax.
According to the Verge, Amazon's warehouse expansions have given it a physical presence in more a regions, "speeding up deliveries but also opening it up to taxes."
In December, the United States Supreme Court declined to hear Amazon's appeal against New York state regarding a ruling that required the retailer to collect tax in the state. Amazon attempted to fight a ruling that its relationships with local affiliates constituted a physical presence. According to WebProNews, the ruling will most likely serve as a precedent for future rulings.
The Verge reported that while Amazon opposes what it calls a "patchwork of state-level taxes," it supports congressional efforts to establish nationwide online sales tax rules.
The states join Arizona, California, Connecticut, Georgia, Kansas, Kentucky, Massachusetts, New Jersey, New York, North Dakota, Pennsylvania, Tennessee, Texas, Washington, West Virginia, and Wisconsin in being subjected to sales tax by Amazon.