Amazon's withholding policy has changed over the years. In the US, state and local sales taxes are levied by state and local governments, not at the federal level. In most countries where Amazon operates, sales tax or value added tax applies uniformly across the country, and Amazon is required to collect it from all customers.
Many US states have passed an online shopping tax law designed to force Amazon.com and other ecommerce retailers to collect state and local sales taxes from their customers. Amazon.com originally collected sales taxes only from five countries in 2011, but in April 2017 collected sales taxes from customers in 45 states that had state sales taxes and in Washington, DC Amazon did not collect sales taxes from Alaska, Delaware, Montana, New Hampshire, and Oregon, since those states do not have state sales tax. In addition, about half of all Amazon.com purchases are sold on the Amazon Marketplace through third-party vendors, and these purchases remain tax-exempt except in Washington state, where this purchase (starting 2018) is now taxed.
Video Amazon tax
​​â € <â €
Proponents force Amazon.com to collect sales taxes - at least in countries where it maintains a physical presence - argues the company holds an anti-competitive advantage over a storefront business being forced to collect sales taxes. The tax opponent responds to this argument by showing that each country can make a storefront business more competitive by lowering or completely eliminating sales tax. Amazon is under increasing legal and political pressure from state governments, traditional retailers and other groups because of their refusal to collect sales taxes in 41 of the 45 states with statewide sales tax (as of March 2017). These countries including several Amazon places have a clear physical presence through distribution centers and wholly owned subsidiaries.
Amazon says it will support federal solutions to sales tax issues as long as the law is fair and simple. In May 2011 legislation has been introduced in Congress to allow countries to impose sales tax on sales to their residents from outside the country. Amazon has yet to state the public position on the bill. Amazon's competitors say it's not sincere. A similar law, called the Main Street Fairness Act, failed on committees in 2010. Several previous versions of the bill also failed to advance. Amazon lobbyists met four times with members of Congress or their helper in 2010 on the Main Street Fairness Act. The company spent $ 100,000 to lobby in 2010, though it also includes other bills being 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, doubling what it spends on the 2008 election.
Maps Amazon tax
Country law
Not all countries listed below have implemented Amazon laws. The country's response varies greatly. In many cases, Amazon has begun to collect sales taxes because they have opened a fulfillment center or other physical presence in the state. In other cases, countries have signed agreements with Amazon to collect sales taxes, but formal laws have not been passed. Finally, some states have passed laws that require resellers outside the country to collect sales tax or notify buyers that they are responsible for reporting sales tax payable to state tax authorities. During the first wave of "Amazon legislation", many states determined that if an affiliate or other entity in the state receives compensation for referrals to online retailers, it is a liaison in the country and therefore the retailer is responsible for collecting sales tax. In many cases, once the law is passed, Amazon closes its affiliate program in those states and can avoid the collection of sales taxes. Other countries (such as New York) take a more rigorous stance and require online retailers to collect sales tax on all sales and shipments to residents in their state regardless of whether the retailer has a physical presence in the state. Finally, many agreements and laws require Amazon and other online retailers to only collect state sales tax, not local sales tax.
Alabama
On October 1, 2015, Alabama allowed resellers to voluntarily join their Simple Use Taxes usage program, where sellers will collect a flat 8% sales tax wherever they are shipped into the state. The Alabama law also allows them to lock the 8 percent level even if the federal government adopts a higher figure in the future. Taxes apply to all sales wherever they are shipped in the state. Furthermore, if the seller pays on time, they will be able to save 2% and only send 6% to Alabama. As a condition of joining the program, the seller agrees to keep a record of all sales to Alabama, including the buyer's name and address and the amount of purchases and taxes collected. Then, on January 1, 2016, the new rules announced by the Alabama Revenue Department require that any seller outside the country that commits more than $ 250,000 in sales to the residents of Alabama will be required to collect sales tax. This seems to contradict Quill Corp. v. North Dakota.
Starting November 1, 2016, Amazon began collecting state sales taxes by participating in the Simple Use Alabama Tax Remittance Program, joining more than 50 other retailers who have joined the program.
Arizona
On October 26, 2012, Amazon reached an agreement with the Arizona Revenue Department to pay $ 53 million to settle the unpaid sales tax. Furthermore, effective February 1, 2013, Amazon agrees to begin collecting sales tax for goods sold to Arizonans. Furthermore, on July 1, 2013, Amazon will also begin collecting sales tax on digital products or services, such as books. Amazon only agrees to collect state sales tax of 6.6%, but there is no requirement to collect local sales tax, which can bring the total tax close to 10%. This is an agreement between Amazon and Arizona, which primarily centers on Amazon's tax liability for maintaining a warehouse in Arizona. Arizona does not have state laws that force other online retailers to collect sales tax if they do not have physical connections in Arizona.
Arkansas
In 2011, Arkansas passed a bill requiring Amazon to collect sales taxes. The bill leverages the use of Amazon-based affiliates based in Arkansas to build the necessary physical connections. Amazon responded by terminating an Arkansas-based affiliate contract effective July 24, 2011. On March 1, 2017, Amazon will levy a tax on the sale of the Arkansas population after the law was moved to collect sales taxes from online retailers. Whether Amazon collects local sales tax is unclear. Arkansas is currently considering two bills that would require online retailers to collect sales tax (SB 140) or tell the Arkansas residents that they owe sales tax to the Arkansas government (HB 1388).
In April 2017, Amazon began collecting sales taxes in the state.
California
In 2009, California representative Nancy Skinner encouraged legislation to impose an approved online sales tax as part of the state budget. Governor Arnold Schwarzenegger vetoed the law. On January 19, 2011 Skinner introduced a similar law in the form of AB153 which later became law. The bill requires online retailers with affiliated states in California to collect sales taxes on purchases made by citizens. Affiliate provisions are entered to ensure that only sellers with the California nexus are taxed, as required by federal law. "This legislation will close the current gap in tax laws that have allowed companies outside the country to avoid the collection of California's sales and use of taxes," Skinner said. Skinner estimates that AB153 can earn between $ 250 million and $ 500 million per year in new revenue. He and other supporters of the bill believe that the election of Jerry Brown to the governor and the support of retailers such as Barnes & amp; Noble will help measure into law.
In 2011, Amazon threatened to terminate about 10,000 affiliates located in California if pending legislation in the state legislature considers its members as the liaison that requires the collection of sales tax to be passed. The California affiliate will no longer receive commissions on referrals to Amazon. As of March 2011, four bills are pending in the state legislature which will determine the use of an association located in California- * for sales referral as an activity taxed by California. In a letter addressed to the California Equality Council, the body responsible for collecting sales taxes, Amazon called the law "unconstitutional" and said it would terminate its California affiliates if passed. "If any of these new tax collection schemes are adopted, Amazon will be forced to end its advertising relationships with more than 10,000 California-based participants in the Amazon 'Associates Program," wrote Paul Misener, Amazon's Vice President for Global Public Policy.
In response to Amazon, Nancy Skinner said, "It's really about e-fairness.This is really fair and shows our California Business that we do not hang them to dry up." According to the American Independent Business Alliance, the company operates in at least seven cities in California and must be forced to collect sales tax regardless of the threat.
In July 2011, Amazon fulfilled its promises to terminate its California affiliates. According to the Performance Marketing Association, there are 25,000 Amazon affiliates based in California. However, on the Amazon website, under "Subsidiary of the United States," listed are four California locations for A2Z Development Center Inc. - "innovative customer-oriented software development" - including in San Francisco and Cupertino, where the Kindle is designed; a search engine company called A9.com in Palo Alto; and, in San Francisco, Alexa Internet, another Amazon search company.
Because of his opposition to rules that require companies to collect sales tax, Amazon.com faces a boycott of California's non-profit coalition. One of the groups behind the boycott, Think Before You Click CA, said the increase in sales tax enforcement would earn $ 200 million annually in additional revenue and encourage people to shop at local traditional retailers rather than online.
Compromise with Amazon.com
In response to resistance from Amazon.com, other online retailers, and anti-tax groups, the State of California agrees to postpone a year before requiring online retailers to begin collecting sales tax on sales to the California address. In return for a one-year delay, Amazon.com says it will create 10,000 full-time jobs, 25,000 seasonal jobs, invest $ 500 million in facilities in California over the next few years, and begin delivering sales taxes on orders sent to California. California began collecting sales taxes on September 15, 2012 and rates will depend on where the buyer is located. However, this requirement may not apply to third party sellers in Amazon.
Colorado
Responding to HB 10-1193 graduating in 2010, Amazon ended its relationship with all affiliates located in Colorado. The bill initially sought to sell taxes to Colorado residents by online retailers with Colorado affiliates. The bill was changed to remove all references to affiliates to prevent Amazon from severing ties with them. The final bill requires that major online retailers send taxes on sales to Colorado residents or provide information about Colorado customers to the state. Despite these steps, Amazon still decides to terminate its Colorado affiliate.
Amazon began collecting sales taxes in Colorado on February 1, 2016. On February 23, 2016, the 10th Court of the Federal Circuit Court of Appeal upheld the law against legal challenges by the Direct Marketing Association. Ruling Judge Neil M. Gorsuch argues that undoing the law will create statewide "tax shelter" for online retailers. Following the decision, policy experts estimate that the decision could lead to an integrated push for a national internet sales tax. It is unclear whether Amazon collects local taxes or not.
Connecticut
In May 2011, the Connecticut Government Dannel P. Malloy signed a law requiring online retailers to collect sales tax if they have affiliates in the state. This law aims to collect $ 9.4 million. Amazon says the Connecticut law violates Quill Corporation v. North Dakota and soon moved to end his affiliate relationship in Connecticut. Amazon accused traditional retailers as Wal-Mart was behind Connecticut's new law.
"We are opposed to this new tax law because it is unconstitutional and counterproductive, supported by large box retailers, who are mostly based outside Connecticut, who are trying to undermine their competitors' affiliate advertising programs.The similar regulations in other countries have caused for job losses and income, and little, if any, new tax revenues, "Amazon said in a letter to his affiliates.
Amazon has agreed to collect a state sales tax of 6.35% in CT from November 1, 2013. Amazon also agreed to invest $ 50 million in Connecticut and to create hundreds of new full-time jobs in the state.
District of Columbia
Amazon began collecting a 5.75% DC sales tax on October 1, 2016.
Florida
In editorial equity tax support 2012, Florida The St. Petersburg Times writes, "As long as internet-only sellers like Amazon.com can get away with not collecting state sales taxes and effectively sell their products at least 6 percent less, Florida merchants pay the price.It's past time for lawmakers to work toward the level of the playground. "
In May 2014, Amazon began collecting sales taxes in Florida after starting a plan to build two warehouses in the state. Amazon agreed to collect a state sales tax of 6%, but did not mention collecting local sales tax
Georgia
Georgia has passed effective laws in January 2012 expanding the definition of what constitutes a physical presence in the country in the hope that it will force online retailers to begin collecting sales taxes. However, Amazon does not collect sales tax until Amazon agrees to start collecting Georgia sales tax on September 1, 2013.
Hawaii
In January 2017, state lawmakers in Hawaii are considering legislation requiring Amazon and other online retailers to collect sales taxes. Amazon began collecting the state sales tax of 4%, starting April 1, 2017.
Idaho
Amazon began collecting sales tax of 6% Idaho from customers living in Idaho starting Saturday, April 1, 2017.
Illinois
Illinois passed a law to impose an online sales tax to consumers residing in the state. In March 2011, Gov. Pat Quinn signed the "Main Street Fairness Act," which targets online retailers with Illinois affiliates. Quinn said the move would help create fair competition and generate more income for the country. Illinois estimates that it loses $ 153 million in sales tax every year as non-state retailers do not send sales tax on purchases made by Illinois residents. Some online retailers have responded to this law and similar efforts in other countries by threatening the income tax revenue collected from their online affiliates. Amazon, along with Overstock.com, has threatened to terminate affiliates in countries that demand sales tax collected by online retailers, including Illinois. Wal-Mart responded by inviting an Illinois-based online business to join its affiliate network.
The Illinois Institute of Policy has said that the law is "all pain and no profit." While it's "sold as a significant revenue addition and a step towards better taxing justice, it achieves little more than encouraging online entrepreneurs out of the country."
The law was declared unconstitutional in October 2013 by the Illinois Supreme Court because it only applies to online businesses. Illinois then issued a similar regulation that applies to "catalogs, mail-orders and similar retailers along with online sellers... if they had sales of $ 10,000 or more in the previous year." Although the law comes into force on 1 January 2015, resellers are given an additional month to comply with the law. Online retailers are required to collect state sales tax of 6.25%, but no need to collect local sales taxes other than state rates.
Amazon announced in October that it plans to build some facilities in Illinois by 2017, including the first of this year, which will eventually require it to collect state use taxes.
Indiana
Indianapolis-based Simon Property Group sued the country in 2011 to force it to collect sales tax from Amazon in an attempt to equalize. In a settlement deal brokered by Governor Mitch Daniels in January 2012, Amazon agreed to collect sales taxes from Indiana residents beginning January 1, 2014. Amazon has four distribution centers in Indiana, which meet the physical requirements.
Iowa
On January 1, 2017, Amazon began collecting 6% sales tax in Iowa. Because Amazon has no physical presence in Iowa, it is not forced by law to collect state sales taxes. Amazon will not collect any of the local options from the sales tax.
Kansas
Amazon has been collecting sales taxes in Kansas since at least 2005 despite reopening its distribution center in 1999, which meets the physical attendance requirements that often force retailers to collect sales taxes. The proposed Senate Bill 111 will require online retailers to notify Kansas residents of their sales tax liabilities if a reseller does not collect sales tax on the transaction.
Kentucky
Amazon has been collecting sales taxes in Kentucky since 2005 according to the Tax Justice Blog, but Amazon has maintained its distribution center in Kentucky since at least 1999. Kentucky does not have laws that require the collection of sales taxes for companies that have no physical presence in the country.
In the 2011 edition of The State (A South Carolina paper) criticized the Kentucky incentives given to Amazon to build a distribution center in Lexington. They wrote, in connection with the South Carolina deal, that an agreement with Amazon created "... yet another exception in our Swiss-cheese tax code, and surrendered [ed] what little leverage we have to collect taxes on the fastest growth of the retail sector segment - from which we get the lion's share of the revenue that runs state governments. This is just a small step from giving Amazon a five-year liberation from collecting sales taxes from SC residents to provide equal breaks to Walmart, Target, and all other businesses that offer online shopping - as one of the Senate amendments actually proposed to do. "
Louisiana
From 1 January 2017, Amazon began collecting sales taxes in Louisiana. Louisiana citizens, whose state has one of the highest average combined sales tax rates in the country, now pay, on average, 9% in state and local sales and use taxes for Amazon purchases.
Round 22, ratified on March 14, 2016 requires online retailers to collect sales tax on online purchases.
Maine
On April 1, 2017, Amazon began collecting 5.5% sales tax in Maine following pressure from state officials.
Maryland
On October 1, 2014, Amazon began collecting sales taxes in Maryland ahead of the planned unveiling of a new distribution center in Southwest Baltimore. Maryland does not currently require online retailers without a physical presence in the state to collect sales taxes.
Massachusetts
On November 1, 2013, Amazon began collecting state sales taxes of 6.25% for the population of Massachusetts. Collection applies only to purchases made in Amazon and not to third party sellers via Amazon. Amazon is now collecting sales taxes mainly because it now has a physical presence in Massachusetts.
Michigan
On October 1, 2015, Amazon began collecting sales taxes in Michigan in accordance with a law that forces online retailers to do so if they have a physical presence in the state.
Minnesota
On October 1, 2014, Amazon began collecting sales taxes in Minnesota. There is no state law that forces him to levy taxes. This decision came before Amazon's decision to open a distribution center in Shakopee which opened in early 2017.
Mississippi
On January 12, 2017, the head of the Mississippi tax collector applied for any company that does more than $ 250,000 sales in Mississippi annually to collect 7% state sales tax. Amazon has begun to collect sales taxes as of 1 February 2017. Furthermore, at least 3 bills have been entered into the state legislature to require a reseller to remit sales taxes. Mississippi will allow internet tax bills authorized by the home committee on February 1, 2017, to die on the committee. Governor of Lt. Tate Reeves called the bill unconstitutional.
Missouri
Two legislators in Missouri have proposed to join the Efficient Sales Tax Project to ensure that the state collects sales tax on goods sent from online retailers outside the state. Currently Missourians are required to submit usage taxes for purchases made online but the state government has no practical method of forcing compliance. The legislative staff report that taxing online sales should significantly increase revenue. Rep. Margo McNeil cites a University of Tennessee study that says Missouri will lose $ 187 million in 2011 by not burdening online sales. McNeil also said that an efficient sales tax is a good way to end the unfair advantage enjoyed by online retailers over traditional businesses. "Taxes are a step in trying even the playing field because now we have a lot of people coming in and using the store as a showroom and then go home and buy on the Internet...," McNeil said.
On February 1, 2017, Amazon began collecting a portion of the sales tax rate in Missouri of 4.225 percent, but it did not collect the city and county portions of the sales tax rate charged on local purchases.
Nebraska
Amazon began collecting sales taxes in Nebraska on January 1, 2017. Nebraska does not currently have laws that require online retailers to collect sales tax if they do not have a physical presence in the state. Sales tax in Nebraska is 6%.
Nevada
The legislation that will require Amazon to collect sales tax on purchases sent to Nevada failed on a committee in the state legislature in May 2011. The legislation is proposed by the Nevada Retail Association and is expected to generate $ 16 million annually in additional sales tax collections. Concerns about whether such a move could push Amazon.com to close its distribution center in the state is partly responsible for thwarting this law. However, in April 2012, an agreement was reached that required Amazon to collect sales taxes from Nevada customers beginning January 1, 2014. The agreement will include state and local sales tax collection. Nevada does not require other online retailers without a physical presence in Nevada to collect sales taxes.
New Jersey
Amazon starts collecting sales taxes in New Jersey on July 1, 2013. This is the result of opening warehouses in New Jersey. New Jersey has not passed a law that would require online retailers without physical presence to collect sales tax.
New Mexico
Effective April 1, 2017, Amazon began collecting sales taxes in New Mexico. The New Mexico Department of Revenue says that over 5 percent sales tax will be collected with some going to the state's general fund and some going to the cities where the product was purchased. This 5 percent is much less than the combined state average and local sales tax of 7.51 percent.
Some bills are currently being considered for reforming New Mexico's tax laws and forcing online retailers to collect sales taxes.
New York
In 2008, New York passed a law that would force online retailers to collect sales tax on shipments to citizens. Shortly after the law was signed, Amazon filed a complaint in the Supreme Court of New York of objections to the law. Complaints are not based on whether customers in the country have to pay taxes, but over long-standing practices it is the customer's responsibility to report sales tax (known as usage tax in this case) and not from business outside the country. The lawsuit was tried in court in January 2009, when New York District Court Judge Eileen Bransten stated "there is no basis on which Amazon can win."
In 2011 Overstock.com sued the state of New York to prevent the need to collect sales tax on goods delivered to New Yorkers. To meet Quill Corp's physical presence requirements v. North Dakota, the law targets resellers outside of the country who use affiliates based in New York. Overstock.com believes that the use of affiliates is insufficient to meet physical attendance tests and that the law violates the Trading Clause. In addition to filing a lawsuit, Overstock.com has suspended 3,400 affiliates in New York.
In early 2017, Governor Cuomo proposed that sales tax collection be applied to Amazon's "Marketplace" operations. In April 2017, Amazon began collecting sales taxes in the state.
North Carolina
Due to previous state laws, Amazon does not allow North Carolina residents to participate in the Amazon Affiliate program, but this is no longer the case. Beginning February 1, 2014, Amazon began collecting NC state sales taxes on orders.
North Dakota
Amazon has been collecting sales taxes in North Dakota since at least since 2001 because they operated a fulfillment center in Grand Forks at that time until 2005. Even after closing the fulfillment center, they still collect sales tax even though North Dakota still has not passed the Amazon law tax.
Ohio
A study released by the University of Cincinnati in October 2011 determined that the Ohio state government could increase tax revenues by at least $ 200 million per year if Congress requires online retailers to collect and send sales taxes. Ohio consumers who make online purchases are required to self-report and pay sales tax but compliance is rare. According to the study, even though more than 60 percent of households in the state made at least one purchase from online retailers in 2010 less than 1 percent of Ohio state income taxes including tax payments for those purchases.
On June 1, 2015, Amazon began collecting sales taxes in the State of Ohio due to a new data center under construction in Columbus, Ohio. It meets the requirements of Amazon's physical presence to start collecting sales taxes in the state due to affiliates owned by Amazon.
Oklahoma
Oklahoma Governor Mary Fallin announced in February 2017 that on March 1st, Amazon will begin collecting sales taxes on online purchases. It follows a section by the state legislature of the Oklahoma Retail Protection Act, introduced by Representative Chad Caldwell. Under the Act, affected retailers are responsible for collecting and submitting state and local sales taxes or informing their customers of their tax obligations.
Pennsylvania
The Pennsylvania Revenue Department released a sales tax bulletin on December 1, 2011 outlining the Commonwealth's interpretation of the 1971 Tax Reform Code (TRC). This Bulletin focuses on the Commonwealth definition of nexus for the purpose of collecting sales taxes, and shows that the TRC defines business as "maintaining a place of business in this Commonwealth" if the business is engaged in activities within the Commonwealth "either directly or through a subsidiary, representative or agent , in respect of rent, sale or delivery of real personal property. "
When issuing sales tax bulletins, Revenue Secretary Dan Meuser said that the Commonwealth would lose about $ 380 million in 2011 because there is no online sales tax collection. The problem is the presence of four Amazon Fulfillment Centers located in Pennsylvania. In early December 2011, Meuser said that if sellers outside the previous state have not collected the list of state sales taxes and start collecting taxes before February 1, 2012, then the Commonwealth will not seek tax refunds. After this deadline, Meuser said the Commonwealth would take enforcement action seeking tax returns. On January 27, 2012, Meuser said that the new tax collection policy is given a one-time extension until September 1, 2012 because "the original compliance deadlines are impractical from an operational and technical standpoint." Amazon began collecting sales taxes in the state that began on the September 1 deadline. Currently, Amazon only collects a 6% Pennsylvania sales tax, but it does not collect local sales taxes.
Rhode Island
On February 1, 2017, Amazon began voluntarily collecting Rhode Island's 7% sales tax. Back in 2009, Rhode Island has passed a law that will force Amazon to collect sales tax if it has an "affiliate" in the state. As a result, Amazon broke with its affiliates in Rhode Island.
South Carolina
Amazon has agreed to open a distribution center near Columbia, South Carolina that will hire 1,200 people in exchange for a five-year freedom from a sales tax collection from buyers in South Carolina. The House of Representatives rejected the agreement in April 2011 and Amazon canceled plans for its distribution center. Amazon continued negotiations and offered 2,000 jobs in exchange for sales tax exemptions and other incentives. Under compromise approved by the state legislature of South Carolina in May 2011, Amazon agrees to notify South Carolina customers by email that sales taxes are payable on their purchase but the buyer will still be responsible for paying his own taxes. Governor Nikki Haley said he planned to allow the bill to become law without signing it.
In a statement made after a deal for Amazon endorsed the State House, the Alliance for Main Street Fairness said, "Today's voting in the South Carolina House of Representatives is just one step in the process, yet it is unfortunate that most of the House supported a special deal for one reseller candidate at the expense of the existing employers in our country and their 375,000 employees. This election is very disappointing given the dubious last minute promises that of course have affected some MPs to change their voices and voiced our concern to the Senate where we hope they will reach a more just and rational decision.The case against this special agreement continues to grow every day. "
Main Street expressed strong disagreement over South Carolina Senate's approval of this arrangement. In a Main Street press release, "No one complains when Amazon is granted free land, property tax cuts, job tax credits and lifting limits on weekend sales, but in the end, this particular exception only passes after the last backroom transaction. a short appointment made by Amazon officials - something that should disappoint everyone interested in transparency and good governance. "
South Carolina has passed a law requiring Amazon and other Internet retailers to begin collecting sales taxes by 2016. Prior to 2016, Amazon was not required to collect sales taxes on purchases made by South Carolina residents. However, the company is responsible to inform the citizens of South Carolina by e-mail that they face a liability for sales tax and residents are still required to report the value of all purchases made on Amazon in the previous year and pay the appropriate sales tax in their Southern Carolina tax return. Since 1 January 2016, the tax law has expired, which means that Amazon is now required to collect sales tax at the point of sale from South Carolina residents.
South Dakota
On February 1, 2017, Amazon agreed to collect sales taxes in South Dakota. This follows a law passed in 2016 that requires resellers to send sales tax even if they do not have a physical presence in the state.
Tennessee
Amazon is trying to avoid having to collect Tennessee sales taxes during negotiations with economic development officials to build two warehouses outside Chattanooga. Amazon argues that the warehouse is not directly affiliated with the company and therefore does not create a nexus that will require the collection of sales tax. Tennessee revenue officers will not disclose any specific information about the deal with Amazon because their claims will violate state secrecy laws.
The legal opinion by the attorney general affirms the proposed constitutionality of the bill in the state legislature that will require Amazon to collect sales tax on goods sent to citizens of Tennessee. Opinion also states that the construction of Amazon's distribution center in the state is a physical relationship.
According to research conducted by the University of Tennessee Business and Economic Research Center, the Tennessee state government and local government will lose about $ 410 million in tax revenues in 2011 due to online sales.
On January 1, 2014, Amazon began collecting sales taxes on purchases in Tennessee, after a two-year delay from when Governor Haslam signed an online sales tax bill in 2012. Amazon collects state and local sales taxes.
Texas
In 2010, Texas sent a letter of request for $ 269 million in sales taxes that the state argued should be collected and sent for sale to Texas customers. This dollar amount includes taxes not covered from December 2005 to December 2009 and also includes penalties and interest. The Texas authorities began an investigation of Amazon's tax status after a May 2008 report by The Dallas Morning News questioned why Amazon did not collect sales taxes from Texas customers despite maintaining a distribution center in Irving near the Dallas/Fort Worth International Airport. Amazon believes that this distribution center, owned by Amazon.com KYDC LLC, located at the same address as Amazon's corporate headquarters in Seattle, is a legally separate entity and therefore does not establish a physical presence in Texas that will require Amazon to collect taxes sales. Amazon has decided to close Irving's distribution center to avoid future attempts by Texas to force the collection of sales tax.
Texas Comptroller Susan Combs faces skeptical and criticism questions from Texas Senate Finance Committee members February 16, 2011 for his attempts to reassemble sales taxes from Amazon.com. Combs responded by saying that all businesses must obey the law "It is our belief that this is a very, very clear matter about the nexus.As I said, it started probably because of the catalog sales 47 years ago in 1963," Combs said. Combs also cites Texas law to support his argument that Amazon is required to collect sales taxes: "Retailers engage in business in this state if retailers: 1.) maintain, occupy, or use in this state permanently, temporarily, directly, indirectly or through subsidiary or agent, however named, office, distribution, sale or space or sample place, warehouse, storage or other business premises. "The Dallas Morning News published an editorial supporting Combs's effort to collect sales taxes from Amazon.com on February 17, 2011. This paper writes, "It defies the logic that a book purchased online can avoid sales tax while the same book purchased in bookstores can" Sales transactions are sales transactions, and if any are taxed, why others not taxed too? "
In March 2010, the State Rep. Linda Harper-Brown filed House Bill 2719. House Bill 2719 will allow Amazon to evade Texas sales tax by changing the country's tax code to free the company or individual from being classified as a reseller or ordered to provide state agencies with information about purchases made in Texas, if they use "just a fulfillment center... or a computer server." House Bill 2719 contrasts with House Bill 2403, which was introduced by Rep. John Otto. House Bill 2403 will close loopholes in Texas tax codes that support Amazon claims exempt from collecting sales tax.
Legislation is encouraged by Rep. John Otto to ask Amazon and other online retailers with physical connections in the state of Texas to collect and send sales taxes into law in 2011. This law regards any company with a store, distribution center, or other place of business in Texas have a physical relationship there with the purpose of collecting sales tax. Otto says that Amazon argues that they do not need to collect state sales tax because the company does not have a storefront in that state and that its subsidiary has their distribution center in Irving, Texas.
In April 2012, Amazon agreed to create 2,500 jobs and invest $ 200 million in a new distribution center in Texas if the state forgives a $ 269 million resale tax. Under the agreement, Amazon began collecting sales taxes from Texas customers starting July 1, 2012. Under the agreement, Amazon collects a state sales tax of 6.25%, but is likely not a local sales tax.
Utah
Under Utah state law, internet retailers are only required to collect sales tax for online sales if they have a physical presence and Amazon has no physical presence in Utah. However, on December 7, 2016, Governor Gary Herbert announced that his 2017 tax plan included an agreement with Amazon to begin collecting sales taxes on purchases in Utah. Amazon began collecting sales taxes on January 1, 2017. However, the details of the agreement between the state and Amazon remain secret.
Vermont
Beginning February 1, 2017, Amazon began collecting Vermont state sales tax of 6%, ahead of Vermont's internet sales tax laws that will take effect in July 2017. Online retailers will not be required to collect 1% local sales taxes that many Vermont cities impose.
Virginia
In January 2012, Virginia state senator Frank Wagner has introduced legislation that would require companies with distribution centers, warehouses, fulfillment centers, offices, or other such locations at the Commonwealth of Virginia to collect and send sales taxes. Amazon has announced its intention to build two distribution centers in Richmond. This law is supported by the Alliance for Main Street Fairness. The law was enacted in early 2013 with the effective date of September 1, 2013. The only retailer to be affected by this bill, as it only describes what qualifies as a physical relationship, is Amazon and backcountry.com.
On January 22, 2012, the Gov office. Robert F. McDonnell announced that an agreement that Amazon.com will begin collecting state sales tax has been reached with Amazon.com and members of the General Assembly. The announcement notes that Amazon.com began collecting and submitting Virginia sales tax on September 1, 2013.
West Virginia
Starting October 1, 2013, Amazon began collecting sales taxes in West Virginia. This occurred after West Virginia passed a law requiring resellers outside the country to apply sales tax if they or a subsidiary had a physical presence in the state.
Washington
In 2008, Amazon began collecting sales taxes in Washington, their home state, after state law was passed that requires online retailers in the state to collect sales taxes. On January 1, 2018, Amazon began to enforce and collect taxes on the sale of third party merchants to customers of the Washington state, as required by the new state law. Washington is the first to have this policy enforced, with plans to bring taxes on trader orders to other countries in the future.
Wisconsin
Amazon began collecting sales taxes in Wisconsin on November 1, 2013, about a year before the Kenosha distribution center opened. Amazon will only collect 5% state sales tax, but not local sales tax. Wisconsin has not yet passed Amazon laws, Amazon collects sales taxes because of its distribution center in the state.
Wyoming
Beginning March 1, 2017, Amazon voluntarily agreed to start collecting sales taxes in Wyoming. On March 1, 2017, Wyoming issued a bill requiring anyone who committed more than 200 transactions or more than $ 100,000 in sales in Wyoming to pay state sales taxes.
Affiliate
Amazon in the past is often able to overcome the threats of state governments by severing ties with local partners or leaving the country concerned. Amazon broke with affiliates in Colorado due to efforts by state governments to collect sales tax on Internet purchases. Amazon has threatened similar actions against affiliates in Illinois over the same issue. In February 2011, Amazon announced that it will close the Dallas, Texas distribution center over the tax-sales dispute
Isolation entity
Amazon has created a subsidiary that is treated separately for tax issues, a legal technique called "entity isolation". The subsidiary that developed the Kindle is in California, but because it does not sell Kindle directly to customers, Amazon's legal position is that it does not need to collect sales taxes in California. In the company's financial statements for the quarter ended September 30, 2009, the company stated that imposing sales taxes by more countries or Congress could "lower our future sales."
See also
- Alliance for Main Street Justice
- National Bellas Hess v. Illinois
- Quill Corp v. North Dakota
- Sales tax in the United States
References
External links
- "Amazon" Law and Taxation Internet Sales: Constitutional Analysis Congressional Research Service
Source of the article : Wikipedia
0 Comments