Amazon.Com is Now Collecting Taxes in Tennessee

Jan 03, 2014 at 06:00 am by bryan


Something new started this week for online shoppers of Amazon.com... the company has started collecting sales tax in Tennessee. 
 
In a past deal struck with the administration of former Gov. Phil Bredesen, Amazon was absolved from collecting the state sales tax. Customers were responsible for paying them on their own to the state Department of Revenue. That is no longer the case.

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The change came after the retailing giant’s brick-and-mortar competitors argued the situation was not fair. So today, they are collecting taxes after building multiple locations in Tennessee. One distribution facility is in Murfreesboro and employ's about 5,000 residents. Another sits on State Route 840 in Wilson County. 

Current Gov. Bill Haslam reached an agreement with Amazon in 2013 that required it to begin collecting sales tax in Tennessee in 2014. That being said, it is now happening. 

Amazon’s sales tax collection is estimated to generate about $17 million in recurring state revenue, and about $7 million in local revenue, according to the state Legislature’s Fiscal Review Committee.
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