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Amazon Now Collects Sales Tax in Indiana, Nevada and Tennessee

  • Jan 2, 2014 | Gail Cole

 Does Amazon collect sales tax in your state?

When the clock struck midnight in the Eastern Time Zone, online behemoth Amazon.com began collecting sales tax in most of Indiana and the eastern edge of Tennessee. An hour later, Amazon’s sales in the remainder of those two states became subject to sales tax. When the ball dropped in the Pacific Time Zone, shoppers in Nevada ceased to be able to purchase items on Amazon tax-free.

According to Amazon’s website, the online retailer now collects sales tax in 19 states:

  • Arizona
  • California
  • Connecticut
  • Georgia
  • Indiana
  • Kansas
  • Kentucky
  • Massachusetts
  • Nevada
  • New Jersey
  • New York
  • North Dakota
  • Pennsylvania
  • Tennessee
  • Texas
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin

In other words, more than half of all people living in the United States now pay sales tax when they shop at Amazon. And that number will grow: the company plans to build a warehouse in Florida, which will create nexus in the country’s fourth largest state. Amazon is already on track to collect sales tax in South Carolina, beginning 2016.

A federal solution

If the nexus. The federal legislation would enable states that simplify their sales tax laws to require businesses making a certain amount of sales to collect sales tax. MFA passed the Senate last May but has stalled in the House since then.

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photo credit: Ben K Adams via photopin cc

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.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.