Amazon Will Collect State Sales Taxes Nationwide April 1

If you're shopping in a state that has a sales tax, Amazon will collect it.
Amazon Will Collect State Sales Taxes Nationwide April 1
Image credit: Shutterstock

Free Book Preview Tax and Legal Playbook

Get game-changing solutions to your small business questions.
1 min read
This story originally appeared on Engadget

While Amazon has resisted collecting state sales taxes, over the last few years it has bent, state by state. Now CNBC reports that as of April 1, it will collect sales taxes in every state that imposes one, as Hawaii, Idaho, Maine and New Mexico join the list. Even if Amazon (or another online retailer) doesn't collect sales tax, consumers may be on the hook to pay via a "use tax."

For companies like Amazon, however, bringing warehouses, services and data centers closer to where customers live has closed the loophole, and they've begun collecting the tax on their end. Between the taxes and universal pricing policies, the gap between Amazon and local retailers (big box or small) is getting closer.

Of course, the convenience of Amazon Prime and the addition of other services (Fresh, Local, etc.) may keep things tipped in its favor.

More from Entrepreneur

We created the SYOB course to help you get started on your entrepreneurial journey. You can now sign up for just $99, plus receive a 7-day free trial. Just use promo code SYOB99 to claim your offer.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Entrepreneur Store scours the web for the newest software, gadgets & web services. Explore our giveaways, bundles, "Pay What You Want" deals & more.

Latest on Entrepreneur