One major advantage that Amazon has over physical retail stores is that customers usually don’t have to pay sales tax. The company has fought hard to retain that edge, but as it has continued to grow its warehouse network, it has had to budge in a few states. Prior to today, Amazon collected sales tax on online purchases from residents of 16 states in the U.S. Starting today, residents of Indiana, Nevada and Tennessee will also have to pay sales tax on products purchased online through Amazon.
State officials believe that the levies from these three additions are going to generate over $50 million a year, collectively. The number of states where paying sales tax on Amazon purchases is compulsory is now up to 19, the list isn’t going to grow until 2016, when South Carolina will get onboard as well making it an even 20. Amazon may have voiced concerns against taxes being levied at state level, but the company has been vocal in support of Congressional efforts that seek to impose nationwide online sales tax rules. It believes that such a law would level the playing field, though it can’t be said for sure just how long will that take to happen considering the bill is currently pending in Congress.
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