Amazon Extends Sales Taxes to 8 New States
Amazon.com will soon increase the number of states in which it collects sales tax from customers, according to Fortune.
The company will reportedly expand its tax policy to eight new states beginning July 1, more than doubling the number of states over the next 18 months. This past year, legislators in a number of states passed laws compelling the company to collect sales tax in more states.
Up until now, Amazon only collected sales taxes in Kansas, Kentucky, New York, North Dakota and Washington--where it has a physical presence, such as a warehouse. According to Fortune, Amazon made deals to delay the introduction of taxes in some states, promising in some instances to build warehouses and create jobs.
The outlet also reports that some brick and mortar companies such as Best Buy and Sears; who already face sales tax requirements; pushed for the legislation to bring Amazon onto a more level playing field.
This news comes as Amazon faces criticisms from some small business owners.
According to the Wall Street Journal, some small business owners claim Amazon has been using them to boost its own bottomline, mining its marketplace for best-selling products which it then replicates. As a result of such suspicions, some small retailers are scaling back on using Amazon, reports the Journal.