The move is a dramatic reversal for Amazon, which has fought hard across the country against being forced to collect state sales taxes. Texas law requires companies with a physical presence in Texas to collect sales tax. After [Texas Comptroller Susan] Combs concluded last year that the company owed $269 million in uncollected sales taxes, Amazon closed down the warehouse and argued it did not qualify under the law. The deal announced Friday settled that dispute.
Amazon only collects sales tax on purchases made from five states—Kansas, Kentucky, New York, North Dakota, or Washington—and after reaching a settlement with the state of Texas, will now begin collecting taxes from the Lone Star State. If the chatter on Twitter is any indication, consumers in Texas are pretty mad. But seriously, it’s no big deal. I have never heard a single person in New York complain about paying sales tax for Amazon purchases. It will be fine. [via]