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Amazon Begins Collecting Texas Internet Sales Tax

Retailer had deals in place to collect online sales tax for 13 states.

Sunday wasn’t just the first day of July; it was the first day Amazon had to begin collecting Internet sales tax from Texas residents.

The July 1 date was part of a tax deal Amazon reached with Texas Comptroller Susan Combs in late April. According to the deal, Amazon would begin collecting Internet sales tax from Texas buyers, create 2,500 jobs and pledge to make $200 million in capital investments in the state. This would settle a $269 million bill Texas presented Amazon with in late 2010 for uncollected sales tax.

Combs noted in April that Texas loses $600 million every year from uncollected sales tax on online purchases. Several states have noted similar losses because of uncollected sales tax and have reached similar deals with Amazon.

Those deals will take effect soon and, according to The Seattle Times, in the next year and a half, Amazon will be collecting Internet sales tax from residents in 13 states. The retailer notes that it already collects Internet sales tax in Kansas, Kentucky, North Dakota, New York and Washington.

About the author

Olga Munoz
Olga Munoz is editor of TheOnlineSeller.com. In addition to writing news and feature articles about e-commerce, selling trends, online marketing and other topics of interest to online sellers, Olga manages the site's social media efforts. A journalism graduate of Chico State, Olga says her favorite part of being a journalist is learning interesting facts that help put stories into perspective, attending industry events and meeting interesting people "that leave you smiling, even in tough situations." Opinions expressed here may not be shared by The Online Seller and/or its principals.



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