Three more states, Nevada, Tennessee and Indiana have joined the growing list of states where sales tax is charged on purchases from Amazon. Amazon is already charging this tax in 16 states. One more state, South Carolina, will join the list in 2016 which will make the take the total number of states appearing in the list to 20.
The states have been making efforts to treat online businesses the same way as brick and mortar businesses for tax purposes even though Amazon and other online businesses have been engaged in long legal battles over this.
Amazon has opened more and more physical warehouses in more states making it a candidate for taxes but pulling out of a state where tax is imposed is not the ideal solution for Amazon. The Supreme Court recently refused to take up for hearing an appeal by Amazon against the New York ruling that its relationship with Amazon affiliates was equal to a physical presence.
Amazon supports efforts of Congress to lay down rules for online sales tax though it is against what it calls ‘patchwork state-level taxes.’
Source: The Wall Street Journal