Amazon is now officially collecting sales tax on all online orders placed and shipped to Indiana, Nevada, and Tennessee. Online orders will now cost an extra 7% in sales tax in addition to the cost of the item and shipping.
Currently, Amazon collects sales tax in 19 out of the 50 states. The Seattle based company is trying their very best to fight in the courts and via lobbyists. One of the tactics Amazon uses to get out of taxes is promising local government a distribution center to create hundreds of local jobs. In some states, they retaliated against the sales tax by dropping affiliate commissions, in the hopes a grass roots effort by local merchants might create some noise.