Amazon begins requiring sales tax in select states, learns lessons
For the past year or so, Amazon has fought numerous battles with state governments over whether they should force customers to pay their relative state taxes at the digital retail point-of-sale system.
However, earlier this year, the company ceded to Texas Comptroller Susan Combs and agreed to begin requiring customers from the state to pay sales tax on their Amazon purchases. This was only the beginning, though, and since then, the company has settled with a number of other states.
Amazon may not be so bad off from the deal. Bloomberg Businessweek reports that the retailer is planning to open another 13 warehouses across the nation, in what many believe is an attempt to speed up deliveries. Furthermore, states that look welcoming to Amazon could benefit from new revenue sources and jobs.
"Amazon is smart like a fox," John Otto, a state representative from Texas, told the news source. "The minute you put a physical presence in the state, you’re obligated to collect the tax."
The obligation cited by Otto is supported by a 1992 Supreme Court decision, Quill Corp. v. North Dakota. The ruling has come under increased attention as a result of tougher economic times and the increasing competitiveness of online retailers.
