Seattle Times: As Amazon steps up tax collections, some cities are left out

Thanks in part to a series of deals with state governments in recent years, Amazon is collecting sales tax in every state that has one. But those deals do not always extend to taxes assessed by local governments. The company still is not collecting sales taxes in dozens of cities, including Philadelphia, Pittsburgh and Cedar Rapids, Iowa, according to a new report from the Institute on Taxation and Economic Policy, a left-leaning think tank. Those cities are in seven states: Alabama, Alaska, Idaho, Iowa, Mississippi, New Mexico and Pennsylvania.

Carl Davis, the report’s author, said local governments were missing out on millions in tax revenue when other income streams are also under strain. And local retailers, many already struggling to compete with online retailers, are effectively forced to charge more for their products than online sellers that are not required to collect local taxes.

“It’s just a direct price advantage that shows up on customers’ receipts,” Davis said. “You never want to end up in the situation where the companies you’re offering better deals to are the ones that don’t even have roots in your community.” Read more

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