Tax & Accounting Blog

Amazon Strikes Deal With Tennessee to Collect Sales Tax in 2014

Indirect Tax, Sales and Use Tax, Sales Tax Nexus October 17, 2011

On October 6th, Tennessee Governor Bill Haslam announced that the state has come to a preliminary agreement with in which the internet retailing giant agrees to collect sales taxes on purchases made by Tennessee consumers if Congress doesn’t address the issue of online sales taxes. Under the deal, Amazon would begin collecting sales taxes beginning Jan. 1, 2014 unless Federal online sales tax legislation is passed.

Amazon has a similar agreement with South Carolina and last month. California lawmakers and Amazon reached a deal that delays when the company must collect state sales taxes until September 2012.