If you live in Tennessee and are one of the many happy Amazon customers taking advantage of their super low prices, free 2-Day delivery and no sales tax then some changes are coming your way. Starting January Amazon customers in Tennessee will be charged sales tax which is said to generate an extra 17 million for the states coffers. As part of the deal reached with Tennessee, Amazon will build a couple of new distribution centers that will also create 3500 new jobs and add 7 million more in local revenue.

Indiana and Nevada are also going to start collecting sales tax from the internet giant Amazon. Thankfully for me I don’t live in a state that is currently collecting sales tax…yet. I enjoy the 7% percent better pricing because of not having to pay sales tax but the bottom line for me is that I am thoroughly disgusted with brick and mortar retailers customer service. Walmart for example that are located everywhere is absolutely pitiful at customer service. So in the absence of customer service I feel no need to be loyal to a local retailer. Since I have to put the same work into finding product information myself, my thinking is I could sit in my home and order products cheaper and easier through Amazon. On almost every product I have purchased including 7% sales tax would still keep Amazon better priced than Walmart. Tech related products are way better priced than Best Buy.

So what are your thoughts on Amazon charging sales tax? Should all States jump on board and require Amazon to collect sales tax? If so, would you still shop at Amazon or would the sales tax margin decrease make local brick and mortar retailers more attractive?

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2 COMMENTS

  1. I don’t think the rules should change just because of the size of the entity. If Amazon has a physical presence, as they will in Tennessee, then sales tax should be charged in that state. And any other state where Amazon has an office or distribution center. Same goes for any brick & mortar, or web store, that ships online. Although hiding behind dummy corps should not be tolerated. I am sure Amazon is getting tax perks from Tennessee. This is how they balance the books. Nothing is free.

  2. As you said, add 7% and the prices on Amazon are still better than brick and mortar stores, it wouldn’t make a difference to me.

    And Jim’s also right: I’m sure Amazon is getting a sweet tax break package. It’s how states lure big companies to locate there. I disagree with it, but that’s the way they’re working. So meh.

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