Post Content

The Los Angeles Times yesterday ran an eye-popping story reporting that giant internet retailer Amazon, which has steadfastly refused to act as a sales tax collector for states, is now working the other side of the street and is selling its services as a tax collector for other merchants who sell products through its site.

Amazon "is now offering to handle sales-tax chores for merchants who sell products through its site for a fee equivalent to 2.9 percent of the taxes collected," the Times reported.

The irony here is that Amazon has been at the forefront of internet retailers who have vigorously opposed efforts to make them sales tax collectors.

The LA Times called the company's decision to sell itself as a tax collector "an abrupt about face."

In California, Amazon agreed this year to abandon an effort to repeal a new Internet sales tax law passed by the state legislature and instead agreed to start collecting and remitting California's 7.25 percent sales tax, plus local taxes, beginning September 15, 2012.

In the past few months, the company's executives have said they would prefer to see national internet sales tax legislation passed, rather than have individual states pursue their own policies.

Amazon does not collect sales tax on items it ships into Massachusetts because the company has no physical presence (warehouses, distribution centers) in the state. 

(Editor's Note: On November 10, the Associated Press reported that momentum is growing in Congress, with evidence of bipartisan support, for legislation to require internet retailers to collect sales tax.)

Written By:

Recent Posts

Free eFile Options for MA Taxpayers posted on Mar 26

Free eFile Options for MA Taxpayers

Learn how to e-file your taxes this tax filing season. It’s easy, secure and it’s free for most Massachusetts taxpayers. Get started today.

MassTaxConnect powers into new year with more speed and precision posted on Dec 21

MassTaxConnect powers into new year with more speed and precision

You know where you’re going. With a few new add-ons, we made it easier to get there. Same road, better ride This January, we hope your 2021 gets off to a smooth start with our enhanced, high performance tax platform. Changes to MassTaxConnect are subtle,   …Continue Reading MassTaxConnect powers into new year with more speed and precision

It’s a new holiday season but some things haven’t changed posted on Dec 11

Scams are rampant but you can protect yourself We are not alone in trying to keep you safe. The IRS and other states are working hard to come up with ways to stop the scammers who never take a holiday. We’ve pulled some of the   …Continue Reading It’s a new holiday season but some things haven’t changed