Friday, September 14, 2012

Amazon to Start Collecting Sales Tax in California

Posted By on Fri, Sep 14, 2012 at 11:14 AM

Various media are reporting that online retail behemoth Amazon will start collecting sales taxes for purchases in California beginning this weekend.

From a report by the AP:

The change, which takes effect this weekend, comes after years of bitter back and forth between the world's largest online mall and the California Legislature over whether Internet retailers should have to charge sales tax. The two sides reached a deal in 2011 that included a one-year grace period set to end Saturday.

According to the AP, the pending change has driven many consumers to go on a buying frenzy, trying to make big-ticket purchases before the tax kicks in.

Though this change brings the issue to a close in California, it will now move on to the rest of the nation. Amazon will be lobbying for national legislation to make the laws more consistent. Idaho's Legislature considered a bill to collect sales tax for online purchases earlier this year as tax-free online sales are estimated to cost the state around $35 million in revenue a year. It failed.

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