More than half of items sold on Amazon are coming through third-party retailers, according to a CNBC report. These retailers can benefit from Amazon’s facilities or payment system, but they are not required to collect sales tax.
It is still a pending issue and a meaningful revenue loss for states, said Carl Davis, research director at the Institute on Taxation and Economic Policy (ITEP), a nonprofit research organization.
Some states have already started to figure out ways to solve this problem.
Minnesota and Washington are the first states to enact laws requiring online retailers to collect tax on third-party transactions, according to a Bloomberg BNA report. Other states like South Carolina have also started challenging Amazon. Read more