Sales Tax on Amazon.com Question

[ChattaDIS]

I have a question for those of you that live in a state that has an Amazon.com distribution center, I know Ky has one. Do you have to pay sales tax when ordering from Amazon. I live in TN and it was just announced that our city has gotten a distribution center which is great from a jobs perspective but I was wondering if this now meant that I would have to pay sales tax.

 

[Pappa Bear]

I have a question for those of you that live in a state that has an Amazon.com distribution center, I know Ky has one. Do you have to pay sales tax when ordering from Amazon. I live in TN and it was just announced that our city has gotten a distribution center which is great from a jobs perspective but I was wondering if this now meant that I would have to pay sales tax.

If the company you order from has a "presence" (brick and mortar facility) in the state you place an order from, then yes, you have to pay the sales tax.

This is what was explained to me when we ordered our last Dell computer. Because of their facility in Middle TN, we had to pay sales tax. My in-laws in GA did not have to pay it on their order for the same reason. In theory, all businesses are supposed to collect it at local rates and remit it to the state you live in. However, most don't unless required to because of the facility rule. Someone else may have more or better information than I do, but this is what was explained to me 2 years ago when we ordered a computer through Dell. As always, do not take it as gospel.

We live near the new distribution center and sales tax was the first thing I mentioned to She Who Must Be Obeyed when the distribution center announcement was made. We expect to have to start paying it and we feel your pain.

 

[tlcoke]

Like the previous poster said, Yes you pay sales tax if they have a physical location in your state.

 

[dizneedoll]

I hope they never open any buildings in CA because not having to pay tax is one of the main reasons I buy from Amazon.

 

[firstcruise]

I hope they never open any buildings in CA because not having to pay tax is one of the main reasons I buy from Amazon.

CA law requires you to pay sales tax even though the merchant does not collect it. The tax is still due regardless. For us in CA the state collects this money when filing state income taxes and has been cracking down over the last couple years.

 

[jcb]

Tennessee accomplishes the same thing as California. If you don't pay sales tax through the merchant, you are supposed to pay a "use" tax on the merchandise. Few, if any, do this, of course. Given that Tennessee has no income tax and its revenue significantly depends on sales/use tax collections, the day is coming when Tennessee will have to step up enforcement of use tax collections. Amazon, for example, says many states require it to report sales (where it does not collect the sales tax).

But to the OP, once Amazon opens a distribution center in Chattanooga, Tennesseans should expect to have Amazon collect the sales tax on merchandise shipped to Tennessee addresses.

 

[mjp12831]

CA law requires you to pay sales tax even though the merchant does not collect it. The tax is still due regardless. For us in CA the state collects this money when filing state income taxes and has been cracking down over the last couple years.

This is true in NY as well.

Most people believe that if they are not charged tax by the merchant that they are not liable for it, however it is not the case. If the merchant does not collect the tax than the taxpayer is responsible for remitting it to the state through their income tax return.

It's all willfull compliance until you get caught.

 

[jcb]

News story about the political fight over whether Amazon will be required to collect sales taxes on Tennessee sales when the distribution center in Chattanooga opens.

http://www.wbir.com/rss/article/154668/2/TN-stores-say-Amazon-shouldnt-get-free-pass