Amazon allowed to collect sales tax from Nevadans


By Sean Whaley, Nevada News Bureau

CARSON CITY — Nevada Gov. Brian Sandoval announced today that the state has reached an agreement with online retailing giant Amazon to begin collecting Nevada sales tax on purchases.

The agreement also calls for the state and the Fortune 500 company to work together for immediate enactment of federal legislation that will address the needs of states, retailers and consumers by creating a simplified and equitable framework for sales tax collection.

Sandoval said he will continue to push Congress to act on legislation that will allow states to collect revenues that are already due.

“The only way to completely resolve this issue is for Congress to enact legislation that, within a simplified nationwide framework, grants states the right to require collection by all sellers,” Sandoval said. “We thank Amazon for creating jobs and investment in Nevada and are very grateful the company is working with us on a federal solution.”

Amazon subsidiaries employ thousands of Nevadans in the Reno and Las Vegas areas.

“Amazon appreciates Gov. Sandoval’s focus on Nevada jobs and his efforts to encourage congress to resolve the sales tax issue this year,” said Paul Misener, Amazon vice president of Global Public Policy. “We strongly support federal legislation permitting interstate sales tax collection because it is the only way to level the playing field for all sellers, the only way for Nevada to obtain all the sales tax revenue that is already owed, and the only way to fully protect states’ rights.”

According to the agreement between the Nevada Department of Taxation and Amazon, the company will voluntarily begin to collect and remit Nevada sales tax beginning Jan. 1, 2014, or as of the effective date of federal legislation, whichever is earlier. Amazon will collect the sales and use tax in the same manner as traditional brick and mortar retailers, relieving Nevadans from having to self-report use taxes from these sales to the state.

 

 

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Comments (6)
  1. thing fish says - Posted: April 24, 2012

    Aww shucks, for once us regular folk were catching a break, a friendly multinational corporation was taking us under their wing and letting us in on some of them tax loopholes.
    If you are bored, go on Amazon.com can look up reviews, or find a ‘best of’ reviews site. The user reviews of the bible are brilliant.

  2. Atomic says - Posted: April 24, 2012

    Collecting sales tax on internet purchases is long overdue. It levels the playing field for local merchants and will support local businesses and tax bases. Stop the crying about taxes already. I’m fed up with people whining about taxes after they drive on the roads, use the services in the community, get their streets plowed, use police and fire services, go to the library….get the picture? This stuff costs money guys, grow up and get over it-

  3. Citizen Kane says - Posted: April 24, 2012

    the headline is a bit misleading – Amazon was always “allowed” to collect sales taxes, they maintained they did not have to, and this makes their pricing predatory as brick and mortar retailers do not have this option (and curioulsy most on line retailers did not take this stance either)

  4. tahoeadvocate says - Posted: April 24, 2012

    Citizen Kane—-I’m not sure I understand the “predatory” comment. An online retailer who does not have a physical presence in a State does not have to collect taxes for that State when one of it’s citizens makes a purchase. This isn’t just online but also mail order over the phone. Now that Amazon has physical presence in Nevada, they should be required to collect sales taxes from Nevada residents.

  5. Citizen Kane says - Posted: April 25, 2012

    Hasnt Amazon had its physical presence in Nevada for years? And they have not been collecting sales taxes in any state where they have warehousing facilities – but not having sales tax be part of their “pricing” is only part of the “predatory pricing” Amazon demands and gets wholesaler pricing from many vendors when it is clearly a retailer – and it’s business model “knows” that brick and mortars function as their no-cost showrooms! The affect on local business is not to the long term benefit of communities, despite the short term effect of making things cheap for consumers. When any company so dominates a market the “good thing” will eventually turn in to a Pandora’s box.

  6. factchecker says - Posted: June 12, 2012

    The retail industry is misleading consumers
    about a “level playing field”, to all who support an amazon tax, if I order a book from you , should you write a check to the state of new york for sales tax, yes you the seller, of course not, you don’t use
    new york schools, fire, police, transit,etc
    so why collect tax.

    The retailers want it BOTH ways, a physical presence and to disadvantage internet businesses , with a physical store, customers can see an item in person, return it, etc , since retailers
    benefit and use transit, roads, etc they pay tax, why should an out of state company pay taxes for services they do not use? To all you nevada citizens please pay new jersey city taxes, school taxes, transit taxes, etc