Amazon Notices Bring Increase in Sales Tax Collections

A law that requires Amazon.com to begin collecting sales tax in Tennessee doesn’t take effect until 2014, but one provision that became effective immediately appears to be having some effect, reports Andy Sher.
Consumer use tax collections in April were $571,197, an increase of $342,964 or 108.1 percent from April 2011. That appears to be directly related to a provision in the law that requires Amazon to begin notifying its Tennessee customers immediately that sales tax payments are already required by state law.
“It’s reasonable to think that April’s increase in consumer use tax … is due to increased attention to the subject via the notices and the increased media attention,” Revenue Department Billy Trout said.
Assistant House Republican Leader Kevin Brooks, R-Cleveland, handled the Haslam administration’s Amazon bill.
“This was the agreement that was reached by all parties to allow Amazon.com to keep 3,500 jobs in our state,” Brooks said. “This was a jobs bill.”

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