Jakebrake wrote:
So far I haven't been charged sales tax from Amazon, however I see the writing on the wall and expect, not in the too distant future tax will be collected and forwarded to the states on all online purchases. It's just a matter of time as the states see all of this revenue they are missing out on to waste.
I think you haven't been paying close enough attention to make that statement, but you're not wrong. I moved to Colorado 2 years ago. Amazon has been collecting sales tax for CO the whole time I've been here for orders where the vendor is Amazon.
If you order from a third party vendor through Amazon, even if your purchase is "fulfilled" by Amazon and shipped from an Amazon distribution center (and all that info is provided to you during the ordering process), it seems to be up to the individual third party vendor whether or not they collect CO sales tax, and most don't. For example, you can purchase from Adorama, Cameta, and many other well known vendors, through Amazon, and not be charged tax if the delivery is in CO. If you order the same item, on the same Amazon website and the vendor is Amazon instead of a third party vendor, Amazon does collect the CO tax.
I read a news story just last week about Massachusetts either winning a lawsuit or otherwise coming to some agreement after a long fight with Amazon whereby Amazon will provide the Commonwealth with all the purchase information on deliveries to MA that haven't collected tax, specifically including third party vendor orders. So, the party is over in MA. I'm only surprised that California didn't beat them to it, since CA already forced Amazon to collect sales tax starting around 2012, maybe earlier, but with the third party vendor loophole. I think CA was first to do that, but maybe I was only paying attention to it because I lived in CA at that time. A side effect was that buying from third party vendors through Amazon suddenly became a lot more popular in CA, go figure. The same arrangement was in effect in CO when I got here. Like Jakebrake said, the writing is on the wall. If MA can do this, so can every other commonwealth and state, and they will. Soon. Amazon is the target now because they are the largest, but after this all the states will go after the next largest internet vendor.
It's not worth complaining about. We got a free ride for several years, and now things will be soon be back to normal. BTW, I don't like to see local shops closed either, but correcting the unfair advantage of no sales tax will not entirely fix that. Small shops in every industry have been severely challenged by big-box stores and internet sales (and before that, catalog mail order vendors who then blossomed with the internet) even in states with no sales tax, so why would that not continue?