A big advantage that Amazon has had over brick-and-mortar retailers for many years is that in most states it didn’t have to pay a sales tax. However, that advantage has gradually been taken away as more and more states have taxed online purchases. Starting next month, Amazon will start collecting sales tax nationwide, in all of those states that have a state sales tax.
CNBC reports that starting April 1st, Amazon is going to start collecting sales tax in the states of Maine, New Mexico, Idaho, and Hawaii. Amazon will thus be collecting sales tax in all 45 states that require it. It has tried to battle with regulators to put this off for as long as it could but in the end, Amazon has had to agree with regulators.
Only those who are based in the state of Alaska, Delaware, Montana, New Hampshire, and Oregon don’t have to pay tax because they don’t have a state sales tax in those regions. Amazon customers in all other regions will now be required to pay sales tax.
What this means is that the advantage that Amazon enjoyed over its brick-and-mortar rivals in these states is now gone but it’s not like all of the progress that the company has seen since its early days can be rolled back just because of the imposition of state sales tax.
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