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Amazon Now Collects Ohio Sales Tax

  • Jun 1, 2015 | Gail Cole

 Online shopping is no longer sales tax free in Ohio.

As of today, June 1, 2015, Amazon.com collects Ohio sales tax.

A visit to Amazon’s About Sales Tax webpage confirms that it's so: Ohio has become the 25th state in which the world’s largest e-tailer collects and remits sales tax. Rumors of future Ohio sales tax collection started circulating last September, when it was revealed that the company was building data centers in Ohio (and receiving generous tax incentives to do so). 

Eventual sales tax collection was inevitable, given Amazon’s budding physical presence in the Buckeye State. Yet the company is receiving kudos for getting out in front of it rather than stalling. Ohio Tax Commissioner Joe Testa praised Amazon’s decision to collect sales tax now and spoke optimistically of future sales tax collections by other remote sellers:

“Amazon deserves a lot of credit, not only for bringing all those jobs and investment to Ohio, but also for voluntarily agreeing to collect sales tax. It’s a great gesture of support for Ohio, and for all the local governments and transit authorities that benefit from sales tax collections. Given the prominence of Amazon in the industry, this decision to voluntarily collect sales tax may lead other remote sellers to collect and remit tax as well.”

Certainly the tax commission has cause for celebration; Amazon expects to collect between $150 million and $300 million in Ohio sales tax annually. And according to Paul Misener, Amazon’s vice president of global public policy, the Big Data network currently under construction is “just the beginning of Amazon in the state.” Moods are so high that Governor Kasich is already talking of using the additional sales tax revenue to “lower people’s taxes.”

It should be noted that Ohio taxpayers are supposed to remit use tax on all untaxed non-exempt purchases, such as those bought online through Amazon. In practice, however, few actually do.

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photo credit: alles-schlumpf 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.