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Amazon’s Sales Tax Starts April 1st

The most popular online shopping sites “Amazon” will start to collect nationwide sales tax starting today April 1st 2017. Sales tax will not be collected from Alaska, Delaware, Montana, New Hampshire, and Oregon.

Proponents of forcing to collect sales tax—at least in states where it maintains a physical presence—argue the corporation wields an anti-competitive advantage over storefront businesses forced to collect sales tax. Tax opponents respond to this argument by pointing out that individual states could make storefront businesses more competitive by lowering or entirely eliminating sales tax. Amazon is under increasing legal and political pressure from state governments, traditional retailers and other groups because of its refusal to collect sales tax in 41 of the 45 states with a statewide sales tax (as of March 2017). Those states include several where Amazon has a clear physical presence via distribution centers and wholly owned subsidiaries.
Amazon says it would support a federal solution to the sales tax problem as long as such legislation was fair and simple. As of May 2011 legislation has been introduced in Congress to allow states to impose sales taxes on sales to their residents from out-of-state. Amazon has not stated a public position on the bill. Amazon’s competitors say it is insincere. Similar legislation, called the Main Street Fairness Act, failed in committee in 2010. Several earlier versions of the bill also failed to advance. Amazon lobbyists met four times with members of Congress or their aides in 2010 regarding the Main Street Fairness Act. The company spent $100,000 on lobbying in 2010, although these expenses also covered other bills discussed at the same time. Amazon has increased political contributions to federal lawmakers. Amazon’s political action committee spent $214,000 during the 2010 election cycle, double what it spent for the 2008 elections.

Wiki – Amazon Sales Tax



About Jon Viloria

Jon Viloria is the Field Production Director at MAUIWatch. Jon works in collaboration with staff writers and editors to create finished video productions. He also manages all location and studio videotaping, audio recording and processing, video editing, and the compositing of special video effects on a variety of media platforms. Jon is also owner of Maui based video company- Digital Audio Vision.

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