Amazon Sellers Brood as States Come Calling for Taxes

Amazon Sellers Brood as States Come Calling for Taxes
Most states take the position that having their inventory in a warehouse, even if the facility
belongs to Amazon, creates a duty to charge sales tax on marketplace sales in those states.
Amazon recently warned its sellers that the company, as of Jan. 1, would be collecting sales tax from merchants
who ship orders to its home state, Washington, as it seeks to comply with a state law signed in July.
Amazon pays hundreds of millions of dollars annually in income taxes and charges tax on the sale of its own goods in every state that has a sales tax.
Many of the merchants said they have received conflicting advice on their sales tax obligations from accountants
and lawyers, according to interviews with several individual merchants and consultants who work with dozens of sellers each.
That will be the first time Amazon has collected a state sales tax for the merchants known as marketplace sellers on its site.
He said he believed the reason Amazon has been reluctant to step in and charge sales tax on marketplace orders is
that it could assume a large additional liability for any mistakes the sellers make.