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Donna L Montaldo

Amazon and Retail Giants Battle Over Sales Tax

By , About.com GuideMarch 17, 2011

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It looks like Amazon is under pressure by large retail chains to start charging sales tax. Currently Amazon only charges sales tax in Washington, where they are headquartered, and where internet sales tax laws have been changed in recent years. This includes Kansas, Kentucky, North Dakota, and New York.

According to Fox, the group, Alliance for Mainstreet Fairness, is a coalition of retail giants including Walmart, Target, Best Buy, Sears and Home Depot, along with small independent retailers, who feel that Amazon has an unfair advantage by not charging sales tax in most states. Retailers are only required to charge sales tax if they have a physical address in a state or if the (nexus) tax laws have been changed.

With states currently suffering from major budget cuts because of financial woes, the group is hoping it will influence more politicians into changing state sales tax laws in order to feed more revenue into their states.

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