Amazon Shoppers Not Paying As Much Sales Tax As You Think

If you’re buying items from Amazon in the New Year, you might not pay as much in sales taxes as you thought. It was announced that starting January 1st the online retailer would begin collecting state sales taxes for the first time. But Department of Revenue Secretary, Kimberly Robinson, says the only sales tax collected are on products sold directly by Amazon, LLC.

“That may be an Amazon product, like a Kindle or an Echo, but it’s also going to be things like toilet paper or anything else you might buy from Amazon,” Robinson said.

But Robinson says that does not include items purchased through third party vendors on Amazon. She says the easiest way to tell whether or not sales tax will be charged is to look at the seller of the item.

“If the seller of the item it listed as Amazon, LLC, they’re collecting tax on that item,” Robinson said.

Robinson says if you purchase online you are required to pay sales taxes at the end of the year, if the seller did not collect them at the time of purchase. She says this has been the law for some time, but participation is low.

Robinson says other online retailers will not be collecting sales tax. But she says starting July 1, those vendors will have a reporting requirement. She says online shoppers will have to submit those taxes themselves.

“They’re going to notify their customers when they make purchases that use tax is due, and at the end of the year, they’re going to send an update to their customers saying these are the items you purchased this year,” Robinson said.