Phoenix Tax Law Blog

Amazon to Include Sales Tax for Arizonans

Online retail giant Amazon will begin collecting sales tax for Arizona.

An agreement was reached between Amazon and the state of Arizona following a dispute over sales tax collected and distributed to state funding. The new taxation policies are set to begin early 2013, 6.6% additional fees on all products and digital sales implemented by July.

The situation arose when Arizona, a state still rebounding from the impact of a harsh recession, sent the online distributor a bill to the tune of nearly 50 million dollars. Amazon responded by disputing they were not lawfully required to collect such imposed taxes for the state.

This is hardly an isolated incident for Amazon. Many other states that enforce a sales tax are not receiving funding from Amazon presently. The situation in Arizona may soon prompt other local governments to explore the necessity this brand of funding.

Adversely, some consumers are complaining the inclusion of sales tax alongside shipping fees will defeat the purpose of purchasing online together strictly for the sake of convenience. It remains to be seen if Amazon sales within Arizona will be heavily impacted by the change in the months ahead.

Posted in State Taxes |