Amazon has implemented its sales tax on shoppers in three new states. The sales tax is now applicable in Nevada, Tennessee and Indiana. This is a novel change that the New Year has brought in its wake.
The three additional states of Nevada, Tennessee and Indiana are ready to contribute their share to Amazon’s coffers, starting January 1st. The states that Amazon charges sales taxes in amount to a total of 19 now. They comprise approximately 180 million individuals which form about half the population of the United States. This could reach $50 million per annum. And these states will become 20 in 2016 as South Carolina will also be added in the list of sales tax paying states to Amazon.
The collection of sales tax is a new development for Amazon. It didn’t have a brick-and-mortar existence in the beginning but now such is not the case. In December, a Supreme Court ruling went against Amazon’s collection of taxes in New York. This of course paved the way for the collection of taxes by Amazon in other states.
Amazon is a big company which thinks big. As its logo indicates it deals in products especially books from A to Z. And with Jeff Bezos at the top, its workers are expected to handle the stress and strains in a stride. No new states will be brought on board till two years have passed. Amazon has its hands full for now. In 2012, Florida entered the fold. That was a landmark decision.
Meanwhile, Amazon muscles its way in where others dare not go. The sales tax debate continues to rage with the law putting its foot down in the middle of the whole matter. Only time will tell whether Amazon prospers even more so in the capacity of a big business or whether it gives in to the forces that be.