Texans to Pay Taxes to Amazon Just Like New Yorkers Do

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]

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3 Comments / Post A Comment

mlle.gateau (#417)

I will throw in here that Tennessee residents will soon have to start paying sales tax on Amazon stuff, and I do feel strongly about this because tax is close to ten percent, and adding sales tax to Amazon will completely negate whatever savings I gain… which means I am screwed when it comes to buying books for school. I have no problem paying taxes in general, but since there’s no income tax here, sales tax is obscene, and it’s even close to ten percent on food, and unlike income tax, there’s no remittance for low-income people like myself.

thewurst (#435)

@mlle.gateau In Birmingham, sales tax is ten percent and there’s income tax. We are also supposed to pay sales tax on everything we buy online when we file our tax return.

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