Amazon to Charge Sales Tax in 45 States

The days of dodging sales tax by shopping online are limited.

Ready your wallet: Amazon will charge sales tax in all but five states beginning April Fools’ Day.

The online juggernaut has added Hawaii, Idaho, Maine and New Mexico to its list of states in which it collects sales tax, reported CNBC. On April 1 and beyond, items sold by LLC or its subsidiaries and shipped to destinations in these states — and 41 others — will be subject to tax.

According to Yahoo! Finance, Amazon has been slowly adding states to its sales tax list for months. On Jan. 1, it added Iowa, Louisiana, Nebraska and Utah; on Feb. 1, it added Mississippi, Missouri, Rhode Island, South Dakota and Vermont; and on March 1, it added Oklahoma and Wyoming. Amazon also charges sales tax in the District of Columbia; it began doing so on Oct. 1, 2016.

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Collecting sales tax on online purchases is a heated subject. Under current laws, online retailers like Amazon have only been required to charge sales tax if they have a physical presence in the same state where the buyer is located.

For years, many have argued that this ruling makes it difficult for brick-and-mortar retailers to compete with online retailers. Legislators have also argued that it robs money from state budgets.

Politicians have tried to pass laws that would empower states to require retailers to collect taxes for products they sell online. The most recent attempt came from Rep. Bob Goodlatte, R-Va., who introduced the proposed bill Online Sales Simplification Act of 2016 in September of last year. Some online retailers — like eBay — oppose such legislation.

Amazon and other e-commerce sites do not collect sales tax in Alaska, Delaware, Montana, New Hampshire or Oregon. These states do not levy statewide sales taxes and thus remain exempt from taxes on Amazon or other online retailers.

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