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Amazon Fights to Avoid Sales Tax

Keeps a map of where employees can travel to

By Kevin Spak,  Newser Staff

Posted Aug 3, 2011 11:10 AM CDT

(Newser) – It’s not a lucky quirk of the laws that keeps Amazon from charging you sales tax—it’s a concerted campaign. Former employees tell the Wall Street Journal that the company goes to great lengths to shield customers from the tax man. Employees for example must consult a color-coded map before traveling, and get special permission before visiting a red-colored state, lest they accidentally trigger laws requiring the company to collect taxes.

Amazon is also currently fighting legal battles against nine states that have passed laws to force online retailers to pay up. In the past, Jeff Bezos has said he thought long and hard about sales tax when founding the company, even contemplating putting its headquarters on an Indian reservation. But the company now says sales tax has little effect on its sales, and notes that it’s long advocated a national sales tax for online retailers, instead of a patchwork of state ones.

A United Parcel Service driver delivers packages from Amazon.com in Palo Alto, Calif., Thursday, June 30, 0211.
A United Parcel Service driver delivers packages from Amazon.com in Palo Alto, Calif., Thursday, June 30, 0211.   (AP Photo/Paul Sakuma)
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COMMENTS
Showing 3 of 11 comments
fractal
Aug 4, 2011 12:43 AM CDT
I sometimes shop on Amazon, and would be happy to pay sales tax.  I do think they have a good point about standardizing taxes for internet shopping.
Count-Spatula
Aug 3, 2011 8:58 PM CDT
"Amazon figths to avoid sales tax." Meanwhile customers fight to avoid Amazon's extortionate shipping charges when they buy more than 3 items.
Matt2h
Aug 3, 2011 7:06 PM CDT
Amazon.com absolutely should collect sales tax as a matter of fairness to other online retailers. Either tax all of them or don't tax any of them.  Did you know that you are currently required to remit sales tax on Amazon.com purchases yourself?
 

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