Amazon Begins Use Tax Notification In Tennessee
- Sales Tax News
- Apr 26, 2012 | Susan McLain
Online purchasers who are not charged sales tax on their purchase will receive an email that “…informs customers they might owe the tax and details the various divisions of Amazon.com from which goods were purchases. It also provides a link to the Tennessee Department of Revenue’s consumer use tax return website, which explains the consumer use tax, who should file and how.”
Amazon agreed to build “…two more distribution centers and add 2,000 full-time jobs” in Tennessee in exchange for a moratorium on sales tax collection. They will start collecting the state sales tax January 1, 2014. Until then, they will send the use tax notifications.
But not everyone is happy with this arrangement. Danny Diaz, spokesman for the Alliance for Main Street Fairness says that “…telling customers they have a tax liability is not the same thing that other merchants are required to do.”
Governor Bill Haslam signed HB 2370 into law this past March. The bill provides for an exemption from collecting sales tax specifically to online retailers who fit criteria spelled out in the bill. However, the bill has an expiration date: January 1, 2014.