October 1, 2019

A Visual History of Sales Tax Collection at Amazon.com

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The last few years have brought big changes to sales tax collection for purchases made at Amazon.com and other e-retail websites. As recently as 2011, Amazon was only collecting sales tax on its direct sales in five states–a fact that gave the company a competitive edge over brick and mortar stores during a critical time in its growth. Today, Amazon is collecting state-level sales taxes on all its direct sales but it still fails to collect sales tax on many sales it makes through the Amazon Marketplace. This points to a broader problem in state tax enforcement that lawmakers in many states are moving quickly to address with laws and administrative action requiring tax collection by Amazon and other large online marketplaces such as Etsy and eBay.

Read More: Gaps in Sales Tax Collection Linger at Amazon.com and Among Other E-Retailers