For much of America, paying sales tax on your Amazon purchases is nothing new.
Yet in small states where the company doesn't have any business operations, Amazon has been a no-tax holdout. The company hasn't been required to collect sales tax and hasn't done so — but that's about to change.
Taxes coming to your Amazon purchases in these states
Residents of Louisiana, Iowa, Nebraska and Utah began paying state sales tax on their Amazon purchases at the start of 2017.
Next up, residents in Mississippi, Missouri, Rhode Island, South Dakota and Vermont will pay tax beginning Feb. 1.
And come March 1, Wyoming residents will be next on the sales tax ledger for their Amazon purchases.
Predictably, state legislators are widely pleased with the move because it will bolster their budgets. Rhode Island alone is expecting a $35 million boost in revenue from Amazon's move, according to AP/ABC News.
Of course, it's a different story for average customers in these states who have to suddenly start paying sales tax to Amazon. They aren't as likely to be thrilled.
In case you're curious, what did residents in these 10 states listed above do before sales tax was collected by Amazon? In theory, they should have tallied up all of their online purchases and sent estimated taxes based on that amount to their state. However, almost nobody actually did that!
As for Clark, he was a vocal early proponent of Internet sales tax as a way to level the playing field between online sellers and brick-and-mortar businesses.
Here's a recap of the states where Amazon has started collecting or will begin collecting sales tax shortly...
Amazon started collecting sales tax in early January 2017
Residents to begin paying sales tax on February 1, 2017
- Rhode Island
- South Dakota
Residents to begin paying sales tax on March 1, 2017
Here are the only states where Amazon still doesn't collect sales tax
Only six states remain where Amazon doesn't collect sales tax and hasn't signaled that it is about to start. (This list excludes states that don't have a sales tax)...
- New Mexico
Remember, the onus is on you if you live in one of these states. You've technically required to tally up your purchases and remit estimated sales tax to your state when you do your taxes!
Find updates and the latest info on sales tax policy on Amazon's sales tax page.
Buy from Amazon without going online (but be careful)
Source: Buy from Amazon without going online (but be careful) by Clark on Rumble