Amazon sales tax will now be collected in Indiana, Nevada and Tennessee, following Amazon’s agreement to start charging the sales tax in 2014, and it’s likely that more states will follow suit because of a major court loss, the Wall Street Journal reported on Jan. 1.
Amazon sales tax is now collected in 19 states with the addition of Indiana, Nevada and Tennessee. Amazon had fought against the sales tax collection but was hit with a major setback in its battle last month when the U.S. Supreme Court refused to hear Amazon’s appeal of rulings related to sales tax collection in New York state.
The court decision means that other states may require an Amazon sales tax. States support the Amazon sales tax because of the significant revenue it generates for state coffers. Together, Indiana, Nevada and Tennessee are expected to collect a total of $50 million annually thanks to the Amazon sales tax.
In Tennessee, residents themselves had previously been required to pay the Amazon sales tax to the state — Amazon wasn’t required to collect it, the Times Free Press reported. It said that the Amazon sales tax is expected to produce about $17 million in state revenue and about $7 million in local revenue every year.
But Amazon continues to oppose the sales tax and has actually ended relationships with vendors in some states, such as Minnesota and Missouri, rather than be required to charge customers a sales tax on purchases.
Despite the addition of the Amazon sales tax to three states this year, no other states are expected to be added until 2016, when the Amazon sales tax will take effect in South Carolina.
See the list of states that collect the Amazon sales tax.