Amazon to Begin Collecting Sales Taxes in All Taxable U.S. States

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Amazon will collect sales tax in all states with a sales tax and add current tax-free states Hawaii, Idaho, Maine and New Mexico, beginning April 1st.

Fortune reported that Amazon will not charge sales tax in Alaska, Delaware, Oregon, Montana or New Hampshire, as these states don’t have state sales taxes.

[Related: 5 Steps to Help You Prepare Now for Ecommerce Tax Regulations]

A 1992 Supreme Court ruling said that online vendors can sell goods without collecting sales tax, as long as they don’t have a physical location in a given state. However, as Amazon sales grew, states weighed methods of whether to hold to that ruling.

[Related: Marketplace Fairness Act Introduced in Senate… Again…]

While most states require customers to track and pay sales tax on purchases even if the tax isn’t collected by the vendor, this ruling has gone unenforced with many losing billions in revenue for cities and states.

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