Sales Tax Initiative

On January 1, 2013, Georgia’s affiliate nexus law went into effect, requiring online retailers with affiliates in the state to collect and remit sales tax to the state. But at least one high-profile company is still ignoring Georgia’s new sales tax law: Amazon.com.

Despite the aggressive efforts of proponents, the 112th session of Congress closed without a vote on sales tax fairness legislation. Sponsors of the Marketplace Fairness Act are now focusing on passage in the new session of Congress.

Last week, the National Governors Association wrote to the Senate Committee on Finance to urge passage of the Marketplace Fairness Act (S. 1832) this year.

On Tuesday, December 11, Gov. Deval Patrick announced that Amazon.com will collect and remit sales tax in Massachusetts starting next fall and that the online retailer will work with the state toward enactment of federal legislation to resolve the sales tax issue.

With the 112th Congress set to conclude at year’s end, an increasing number of newspaper editorial pages have been urging the passage of federal sales tax fairness legislation.

Lawmakers in Michigan and Florida recently introduced affiliate nexus bills that would require remote retailers with a presence in the state via online affiliates acting as sales agents to collect and remit sales tax.

Massachusetts Gov. Deval Patrick has joined the chorus of retailers and others that believe Amazon.com should be required to collect and remit sales tax for purchases made by residents of the state.

The International Council of Shopping Centers has released the results of a national poll that found a majority of Americans support the Congressional effort to require online retailers to collect sales tax at the point-of-purchase.

A study released this week by the Massachusetts Main Street Fairness Coalition shows that sales tax inequity has cost Massachusetts 1,970 new jobs, $279 million in sales to local businesses, and $387 million in state tax revenue.

On October 26, in its SEC quarterly filing, Amazon.com announced that, as part of a settlement with the state of Arizona, on February 1, 2013, the company would begin collecting and remitting transaction privilege tax (TPT, Arizona’s sales tax) to Arizona on in-state purchases.