Amazon may not remain sales tax-free for long

As of July 1, Amazon.com has been collecting sales tax for online retail sales in the state of Texas, reports Bankrate. State Comptroller Susan Combs counted it as a victory, considering she’d filed a lawsuit seeking years of unpaid online sales tax from the online retailer. For Texas shoppers who now must pay more when shopping at Amazon, it was of course no victory.

Even Rick Perry wasn’t dancing in the aisles over Amazon sales tax

Republican Texas state Gov. Rick Perry generally depicts himself as a supporter of big business, but even he had previously issued a veto on the state legislature’s attempt to affix a 6.25 percent online sales tax to Amazon and other online retailers.

Amazon had fought longer and harder than other online retailers to stay off the sales tax ledger in taxes, going so far as to threaten to close down or avoid building business facilities in state. However, Amazon has now given in to pressure raised by Texas state officials. Reports indicate that the hassle of the lawsuit brought by Combs At this time, Amazon.com now practices online taxation for retail sales in Kansas, Kentucky, New York, North Dakota, Washington and now, Texas.

Coming to a state near you

Amazon customers in California will be paying sales tax for purchases come September, and other states will soon follow. New Jersey will require it in July 2013; Virginia in September 2013; Indiana, Nevada and Tennessee in January 2014; and South Carolina by January 2016. It’s all about business. Taxation has become more p0pulat than ever among the nation’s governors for boosting local economies, and Amazon needs money to build distribution centers to keep up with demand. The only one who doesn’t benefit directly is the average citizen, who has been enjoying a “free ride” when it comes to online taxation.

Amazon taxes – the real ‘Hunger Games’

Sources

Bankrate

Fox Business

Wall Street Journal