Amazon’s network of warehouses causing it to have to charge sale tax in three more states

Faydra Deon
By Faydra Deon January 1, 2014 21:12

Amazon’s network of warehouses causing it to have to charge sale tax in three more states

Many people give Amazon.com five stars for fast shipping. That’s because even though Amazon is headquartered in Seattle, Washington, it has warehouses throughout the country that allow Amazon to deliver your packages much faster than if every package was coming out of Seattle, Washington, and going across the other 49 states.

It’s those warehouses, and Amazon’s ambition to spread more warehouses throughout the United States, that has caused the online, retail giant to have to collect sales taxes in several states.

As of today, three more states were added to the growing list. eShoppers in Indiana, Nevada and Tennessee will now have sales taxes added to their purchases when they buy online at Amazon.com.

The following table shows where Amazon has warehouses and where Amazon must collect sales tax. It also shows states where the purchase of textbooks are exempt from sales tax:

Amazon’s US Locations  US States Where Sales Tax is Collected US States Where Textbooks are Tax Exempt
Arizona 
California
Delaware 
Indiana 
Kansas 
Kentucky 
Michigan
Nevada 
New Hampshire 
North Dakota 
Pennsylvania 
South Carolina
Tennessee
Texas 
Virginia
Washington 
West Virginia 
Wisconsin 
Arizona 
California
Connecticut
Georgia 
Indiana 
Kansas 
Kentucky 
Massachusetts
Nevada
New Jersey 
New York 
North Dakota 
Pennsylvania
Tennessee
Texas 
Virginia
Washington 
West Virginia 
Wisconsin 

Connecticut
Massachusetts
New Jersey
New York
North Dakota
South Carolina
Tennessee
Virginia
West Virginia

Students who were charged taxes, who live in the above states, can request a tax refund.

 Gift cards are not taxed, but purchases made with gift cards may be subject to sales tax.

All sales taxes collected are not standard and some states, like California, Nevada and Massachusetts, are required to adhere to special regulations when it comes to buying wireless devices through Amazon.com. Read more about it here.

Then eShoppers in states like Colorado, Oklahoma, South Carolina, South Dakota and Vermont, where taxes aren’t collected on purchases from Amazon, may have additional tax requirements that they need to be aware of. Read more about it here.

What does all this mean for authors who sell books on Amazon?

Quite simply, the cost of your books for your readers living in the above-mentioned states just went up a bit.


Sources for this article:

Faydra Deon
By Faydra Deon January 1, 2014 21:12
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