Amazon to charge sales tax in eight additional states

In a period of about four years, Amazon.com will add 8 more states to the number of states that a customer will be required to pay the state sales tax.  Customers in California and Pennsylvania will start paying their states sales tax on Sept, 2012.  The other states are New Jersey (July 2013), Virginia (Sept. 2013), Indiana, Nevada, Tennessee (Jan. 2014) and South Carolina in 2016.  This isn’t the first time Amazon.com has required customers who reside in certain states to pay their state’s sales tax.  Customers in Kansas, Kentucky, New York, North Dakota, Texas and Washington state have already started to pay state taxes on goods that they purchase from the site.

The reasoning for adding the sales tax was because brick-and-mortar stores have made a hard push to make Amazon.com include the sales tax.  The physical stores believe that by doing this, Amazon’s prices will go up and the playing field between the brick-and-mortar stores and web-based retailers will even out.   Amazon has been able to persuade states not to force Amazon.com to include state taxes on their products was by building warehouses and distribution centers.   The goal of the additional buildings was to create more jobs for the individual states and dissuade particular states from forcing the company to institute the sales tax.

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