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Amazon Begins Use Tax Notification In Tennessee


Tennessee residents will now be reminded of their use tax liability when purchasing from Amazon.com online.

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.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”