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Amazon sales tax coming to three more states this year

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Amazon sales tax is coming to three more states this year, with another to come in 2016. According to Yahoo News on Jan. 1, Indiana, Nevada and Tennessee have all added sales tax for Amazon.com purchases starting this year.

There was already Amazon sales tax in 16 states prior to this, and when South Carolina adds its name to the list in 2016, there will be 20 states charging Amazon sales tax to people making purchases from the site.

The way this works is that states where Amazon adds distribution centers can then force the Internet giant to charge sales tax because they now have a physical presence in that state. Indiana, Nevada and Tennessee are the three latest states to do so.

Recently, Amazon has promoted the possibility of using unmanned drones to deliver their products when the purchaser lives close to a distribution center. While that sounds cool, and Amazon promises the possibility of 30 minute delivery of a new DVD, it also means those customers will have to pay Amazon sales tax on the products now.

Amazon has already gone to battle with New York when the state claimed that they had a physical presence because some of their local affiliates were located there. The Supreme Court refused to listen to Amazon in this case, and as of 2016, there will be 20 states that charge Amazon sales tax, with more possibly on the way as the company expands.

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