Amazon will start charging sale taxes in 8 additional states in the next several years, starting with California and Pennsylvania this September.
This is a shift in policy for Amazon, which until recently had fought pressure to collect taxes. It is now backing the Marketplace Fairness Act in Congress, which would allow states to collect sales tax from out-of-state businesses, said CNN Money.
About $11.5 billion in tax revenue is lost to the states annually due to online sites’ exemption from collecting sales taxes.
For brick and mortar stores, Amazon’s reversal should help level the playing field.
For consumers, the policy shift might add almost $10 to a $100 purchase on Amazon (depending on where the customer lives in the state).
Amazon already collects sales taxes in Kansas, Kentucky, New York, North Dakota, Texas and Washington.
For more see CNN Money here.