Amazon Begins Collecting Sales Tax In Ohio
For the first time, Amazon.com is collecting sales tax from customers in Ohio, a move that the company says could mean hundreds of millions of dollars for the state.
That follows last week’s announcement that the retail giant plans three data centers in Central Ohio.
Amazon customers in Ohio have long been supposed to pay state sales tax on their own, but Amazon only enforces sales tax collection in states where it has a physical presence.
The company says the change could mean up to $300 million a year in sales tax revenue in Ohio.
The retailer agreed to collect sales taxes as part of the data center jobs deal, but it was voluntary because there’s no federal requirement that online retailers collect local and state sales taxes. But he’s pushing for passage of a law that would.
The sales tax collection only applies to purchases from Amazon, and not to third-party retailers who use the Amazon site.