Amazon to Charge Sales Tax in All but 5 States

Amazon to Charge Sales Tax in All but 5 States
Photo by I AM NIKOM / Shutterstock.com

This is not an April Fool’s Day joke: By April 1, Amazon.com will collect sales tax nationwide in all states with such a tax, CNBC reports.

Beginning next month, the e-commerce giant will add four states to its list of jurisdictions in which it collects sales tax.

Amazon has been slowly adding to that list in recent months and years. By late March, the list comprised 41 states and Washington, D.C. So by April 1, Amazon will be collecting in all 45 states that levy statewide sales taxes. The most recent additions to this list include:

  • Hawaii (effective April 1, according to CNBC)
  • Idaho (effective April 1)
  • Maine (effective April 1)
  • New Mexico (effective April 1)
  • Oklahoma (March)
  • Wyoming (March)
  • Mississippi (February)
  • Missouri (February)
  • Rhode Island (February)
  • South Dakota (February)
  • Vermont (February)
  • Iowa (January)
  • Louisiana (January)
  • Nebraska (January)
  • Utah (January)

The five states that do not levy statewide sales taxes — and thus remain exempt from taxes on Amazon — are:

  • Alaska
  • Delaware
  • Oregon
  • Montana
  • New Hampshire

The Associated Press explains:

“Amazon has been slow in collecting sales taxes in small and sparsely populated states where it doesn’t have any distribution centers or corporate offices. The company has historically relied on a 1992 decision that bans states from forcing out-of-state retailers to collect taxes if they don’t have a physical presence in the state.”

The ruling has given online retailers an advantage that some argue hurts brick-and-mortar stores.

Legislators have also argued it hurts state budgets. The AP reports that the tiny state of Rhode Island, for example, expects to bring in nearly $35 million in tax revenue next year from Amazon and other online retailers that follow Amazon’s lead.

If you’re bummed about this news, know there are other ways to save at Amazon:

How do you feel about online retailers like Amazon collecting sales tax? Sound off below or on Facebook.

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