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NC joins the "Tax Amazon" bandwagon

Amazon has gone head-to-head with many U.S. states over the collection of sales taxes on goods purchased through the e-tailer, including North Carolina. But it looks like Amazon is changing its tune in the Tar Heel state. 

According to WRAL, Amazon will begin collecting sales tax in North Carolina come February 1. The amount of tax will depend on the identity of the seller, the destination of the shipment and the kind of item purchased.

The news came as a surprise to many due to the battle between Amazon and North Carolina, which started in 2009. Amazon argued that it didn't have to collect sales tax in the state because it didn't have any physical facilities within its borders. 

In 2010, Amazon sued the North Carolina Department of Revenue to stop it from trying to obtain names and addresses of NC residents who made purchases from the e-tailer. Amazon won. 


[SOURCE: amazongenius.com]

It's not clear why Amazon has now given in to the state's demand for sales tax collection, but North Carolina will now be the 20th state that collects taxes on Amazon goods. 

This is certainly a win for local brick-and-mortar retailers, which have complained about unfair competition with Amazon due to the lack of sales tax collection. 

This is also good news for the state, which claimed to have lost as much as $214 million in online sales taxes each year. 

Earlier this month, it was announced that Indiana, Nevada and Tennessee started collecting sales taxes on Amazon goods starting January 1, 2014. Officials estimate that the taxes from all three together could generate over $50 million a year. 

Amazon isn't expected to tack on any new states until 2016, when South Carolina will be added to the list. 

Source: WRAL





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