Amazon sales tax hits Indiana, Nevada and Tennessee shoppers this new year, according to a Jan. 1 Wall Street Journal report. Starting Wednesday Amazon will begin collecting sales tax in these three states, bringing its taxable states total to 19.
With these latest state additions, the generated sales taxes are expected to exceed $50,000 annually, according to state officials. The 19 affected states have a combined population of approximately 180 million, which is more than half of U.S. residents, the Wall Street Journal reports.
The Christian Science Monitor reports that Amazon’s no-sales tax advantage in Tennessee stemmed from a deal struck with the administration of former Gov. Phil Bredesen, under which Amazon was absolved from collecting the state sales tax and customers were responsible for paying them to the state Department of Revenue.
Now that its brick and mortar competitors have voiced their objections over what they deemed an unfair and non-competitive arrangement, Amazon appears to be losing its top key advantage. With the online retail giant losing its battle to not collect sales taxes in most states, consumers may seek their deals and sales elsewhere.
Not all consumers will mind the new imposed taxes, however. Nashville resident Emily Lilley, frequent Amazon shopper said she doesn't mind the new law because she knows it is beneficial to the her state. “It seems fair when I buy something in a store I pay sales tax, and so if I'm buying something online ... it seems fair to pay sales tax there too,” she said. “And I know the state can use more revenue.”