Amazon sales tax delay leaves millions on the table

A two-year delay in requiring Amazon to collect Tennessee sales taxes could move a step PAULSON+MONEY.jpgcloser to reality Tuesday with votes scheduled by state House and Senate committees.
Gov. Bill Haslam is pushing for the delay and supports a federal solution to the sales tax issue. Waiting two years to make Amazon collect taxes on sales to Tennessee residents is a whole lot better than never making the online retailer collect state taxes, which was the original deal brokered by his predecessor, Haslam says .

Maybe so, but waiting till 2014 still leaves a lot of money on the table – something like $22 million a year in state sales taxes and $9 million a year in local sales taxes.

Considering the tight budgets facing state and local governments, is it a good idea to leave that money uncollected?

I don’t think so.

And it’s not fair to the thousands of businesses in the state – large and small – that follow the law and now collect sales taxes.

Click here for more on House Bill 2370 and Senate Bill 2232.

Click here for the estimated fiscal impact of the two-year delay.