July 25, 2012

Amazon Will Soon Charge Sales Tax (Amazon Sales Tax Schedule)

The online retail giant will start charging sales tax in eight additional states in the coming years, starting with California and Pennsylvania in September, as it puts down physical roots in more places. Amazon already collects sales tax in six states.

That means many customers will have to dig a little deeper into their pockets when buying on the Internet, which some people see as a refuge from sales taxes.

California residents, for instance, might have to pay as much as $9.75 in additional levies on a $100 purchase, depending on where they live in the state. Customers in Philadelphia, meanwhile, would find an additional $8 tax on their bill. 

Collecting sales taxes is a turnaround for Amazon (AMZN), which had long fought states' attempts to force e-tailers to deal with such levies. States estimate they lose $23 billion in annual sales taxes, some $11.5 billion of it from online purchases, according to the National Conference of State Legislatures.

Brick-and-mortar retailers have also pushed hard to have Amazon and other web merchants collect sales taxes, which the physical stores say level the playing field.

Amazon instead sought to have Congress settle the issue. It is backing the Marketplace Fairness Act, which would allow states to collect sales tax from out-of-state businesses.

"Amazon believes the sales tax issue needs to be resolved at the federal level and we're actively working with the states, retailers and Congress to get federal legislation passed," said Scott Stanzel, an Amazon spokesman.

Before the sales tax hits, visit our Amazon store to save on affordable laptop batteries for laptop makers like HP, Sony, Toshiba and much more.

By Tami Luhby | CNNMoney.com 
Edited by Limewit Blog 
Photo courtesy of Amazon

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