March 25 (UPI) — Beginning April 1, Amazon.com will collect sales tax in the remaining states nationwide where the tax exists.
Amazon will begin collecting sales taxes in Hawaii, Idaho, Maine and New Mexico. Already, the online retailer collects sales tax in 41 other states. Alaska, Delaware, Oregon, Montana and New Hampshire do not have sales tax. George Gervais of the Maine Department of Economic and Community Development said the decision will allow Maine retailers to “go toe-to-toe” with Amazon and other massive out of state retailers that are not subject to the states sales tax.
“Today’s decision by Amazon is welcome news to Maine retailers and consumers,” he said. “Amazon’s decision to collect and remit sales tax to the State of Maine is an important first step in leveling the playing field.”
Amazon was previously exempt from charging sales taxes in most states due to a Supreme Court ruling that declared states can’t require retailers to collect sales taxes if they do not have a physical presence where the buyer is located.
The company began collecting sales taxes throughout the country as it began to expand by building data centers, warehouses and other facilities in multiple states.