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