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Amazon sales tax: Three new states charged with tax, 2016 will mark 20 in total

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An Amazon sales tax is in store for three new states this 2014, with Tennessee, Nevada, and Indiana soon being added to the U.S. list of states where online shoppers will be charged a sales tax on their Amazon purchases. Currently, the tax is already collected in 16 other states nationwide, with 2016 marking South Carolina as the 20th state in total to be included. Yahoo! News shares this and other pertinent information surrounding the change this Wednesday evening, Jan. 1, 2014.

The Amazon sales tax might not be a heavy one, but for frequent online shoppers at the popular site, all those dollars may quickly add up for regular purchasers. This week, it has been confirmed that an additional three states are now to be charged with the tax: Tennessee, Nevada, and Indiana. South Carolina will be added to this growing list by 2016, with 20 states falling under the program due to a public failure to claim these costs. Normally, online buyers should be adding up their individual purchases on their annual tax returns (known as a “use tax”) regardless of which state they are in, but because this law is usually not followed, an immediate point-of-sale charge is instead being applied.

Although this will affect buyers throughout the year, costs might especially add up during the recent Christmas season and other gift-giving holidays. According to the national report on the Amazon sales tax:

“This most recent change hasn't happened without strong pushback from Amazon and other online retailers, though; they've gone through several long legal slogs as states pursue sales revenue and parity for local brick-and-mortar businesses.”

With continually growing — there is mention within the next few years of possible drones even carrying Amazon boxes straight to one’s house- - Amazon’s increases in its warehouses have made its national presence even more expansive last year and into the New Year. While this has led to even faster delivery systems for customers, the process has also opened buyers up to hiking taxes. The Amazon sales tax aside, within the last year, the Supreme Court decided not to hear a new lawsuit that was filed against the state of New York, following the company trying to combat a ruling that alleged its connections with local affiliates equaled an overall “physical presence.” While it is against state-level taxes, remains in staunch support of Congress working to create updated online sales tax laws.



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