Mom-and-pop stores may reclaim some business in the wake of a major announcement involving one of the country’s largest online retailers.
Alert: In a move that could lead to significant tax repercussions, Amazon.com began collecting tax on its online sales in Texas on July 1. This prompted an “it’s about time” reaction from state retailers who believe the online giant has enjoyed an unfair advantage for too long.
Amazon now collects sales tax also in Kansas, Kentucky, North Dakota, New York and Washington. Amazon’s agreement with Texas Comptroller Susan Combs to start collecting the 6.25% sales tax follows similar agreements reached in seven other states, Amazon says. Pennsylvania and California will follow in September (see chart below).
“We are thrilled that Amazon will finally have to start collecting,” Valerie Koehler told the Houston Chronicle. “It’s always boggled my mind that they didn’t,” said the owner of Houston...(register to read more)