Amazon to collect DC sales tax
- Internet sales tax
- Sep 21, 2016 | Gail Cole
Beginning October 1, 2016, Amazon will collect Washington, D.C. sales tax.
The news, revealed last Friday by an Amazon spokesperson, is intriguing. The actual statement, emailed to WTOP, read as follows: “Amazon will be required to collect sales tax in Washington, D.C. beginning on October 1.” Why “required?”
The internet retailer does not have a physical presence in the District, as it does in many of the states where it collects tax — unless you count The Washington Post, which is owned by Amazon founder and CEO Jeff Bezos. The District of Columbia does not have affiliate, click-through, or economic nexus laws that would require remote retailers to collect tax on sales to D.C. residents. So why is Amazon required to collect sales tax?
There is speculation that Amazon plans to open a store in the District. Although first and foremost an online retailer, the company does have three brick-and-mortar book stores: in Portland, Oregon, San Diego, and Seattle. It is currently hiring employees for a store in Dedham, Massachusetts (near Boston), and is reportedly looking for a good location in Washington D.C.
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