Damn Damn Damn!!! I’m having a Florida Evans-like breakdown upon hearing the news that online retailer, Amazon.com, will start charging Sales tax in NC effective February 1.
The NC Department of Revenue estimated in 2012 that over $200 million in tax on online orders was lost. Current law does not require online retailers to pay state taxes without a physical presence in the state:
The physical-presence rule is based on a 1992 United States Supreme Court decision, Quill Corp. v. North Dakota, that addressed the obligations of mail-order businesses to collect sales tax on out-of-state sales; the decision has been extended to include online retailers. Generally speaking, a physical presence means such things as:
-
having a warehouse in the state
-
having a store in the state
-
having an office in the state, or
-
having a sales representative in the state.
NC residents are not alone, as Amazon collects taxes in 19 states.
No word on why Amazon has decided to start charging NC customers sales tax, but it may be a preemptive strike against the Marketplace Fairness Act, which hopes to require remote or online retailers to charge and collect state tax — and has already passed the Senate…
Amazon recently increased the minimum threshold for free shipping from $25 to $35 and now this?
