Amazon To Charge Sales Tax Nationwide Starting April 1
Finally leveling the playing field, Amazon will be forced to start paying sales taxes just like a regular brick-and-mortar -- which makes a lot of sense considering the amount of physical presence they have across the nation.
For the record, Amazon has been collecting on a majority of states, but that hasn't been without the lengthy state by state legal battles. However, adding the last few states (Hawaii, Idaho, Maine, and New Mexico) means Amazon is collecting in all 45 states that require it. Alaska, Delaware, Oregon, Montana, and New Hampshire are exempt because those states don't collect state sales tax.
The first of the drawn out fights from the e-commerce giant started around the same time fulfillment, and data centers began pockmarking the nation. While many physical stores collected on online purchases, the litmus test boiled down to whether or not a company had a brick-and-mortar, thanks in part to Quill Corp. v. North Dakota. Quill Corp. A brief history lesson says that while Quill Corp sold a ton of office equipment to people in North Dakota, their lack of a physical store meant they didn't have to pay taxes because they technically didn't operate in North Dakota.
Amazon took that idea and leveraged it until about 2011 when the lion's share of their collection became more prominent. For the record, North Dakota was ready to get the last laugh, collecting state taxes before and after the Grand Folks distribution center was opened and later closed.
A look at states collecting tax through 2015. Source
To Amazon's credit, they have been more for collecting tax which is probably in part to the slow implementation. It also may have been because lower income houses and big ticket items ($250 or more) became harder to sell with the inclusion of a sales tax according to research from Ohio State University.
Either way, Amazon has succumbed to the rules everyone else plays by, giving just a slight edge to brick-and-mortar. And even if that advantage never slows down, it is another step to an equal playing field and increasing revenue.