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Amazon.com Now Collecting TN Sales Tax - John Dunn

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NASHVILLE, Tenn. - Get ready to pay a little more the next time you buy something on Amazon.com.  Beginning January 1 the online retailer must collect Tennessee sales tax.
As the new year begins the prices on Amazon may look a little different. Tennessee sales tax will add at least 9% to your final cost.

Shoppers like David Bailey are not pleased with paying more. For many shoppers, avoiding sales tax was a compelling reason to use Amazon. "Got to buy my books, got to buy my clothes, and I'd prefer to not pay 9% sales tax on it. That's why I go to Amazon, so I'm against it," says David Bailey.

Tennessee and Amazon agreed to make the change when the company decided to build multiple distribution centers across the state. It could mean an extra $17 million a year in state tax revenue. Local governments should see and extra $7 million a year.

Many traditional retailers lobbied for the change. Store owners said it wasn't fair they had to collect sales tax but Amazon did not. Courtney Hastrich agrees with those competitors. "I think that if the stores have to charge it, and it's part of the overall price, than they should have to as well. It's only fair to level the playing field for local stores," says shopper Courtney Hastrich.
Amazon has already updated its website. You'll now see the "estimated tax to be collected" the next time you make a purchase. The store that has almost everything now charges sales tax too.

You might not realize that if you bought something on Amazon before January 1, 2014 you were still supposed to pay sales tax directly to the state. The problem is that many people did not do that.
Tennessee is one of 19 states that now collects sales tax directly from Amazon.com.

For news updates follow John Dunn on twitter @WZTVJohnDunn

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