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Amazon sales tax collection begins today in Pennsylvania

September 1, 2012


Sorry, online shoppers in Pennsylvania. Your Amazon purchases now cost a bit more.


Baby playing with Amazon box_Adam CaudillBeginning today, Sept. 1, the Keystone State tax collector will be getting sales tax revenue on Amazon and other online purchases by state residents.

Pennsylvania is the latest state in which the Seattle-based online retail giant will collect sales tax.

It already is collecting sales taxes on products delivered to Kansas, Kentucky, New York, North Dakota, Texas and Washington.

California will join the group on Sept. 15 when Amazon starts collecting sales tax on products shipped there.

And more states are in the Amazon tax collection queue:

  • New Jersey in July 2013
  • Virginia in September 2013
  • Indiana, Nevada and Tennessee in January 2014
  • South Carolina in January 2016

Amazon has facilities in all of the states where it is now collecting sales tax. Those operations, say tax officials, constitute the nexus, or physical presence, necessary to require online retailers to collect sales taxes on products shipped to those states' residents.

In the states where sales tax collection is pending, Amazon has agreed to build distribution centers or other operations. The promise of new jobs and property taxes convinced the states to give Amazon extra time before implementing sales tax collection measures.

Amazon officials say they prefer that there be a national online sales tax measure that would clarify and simplify online sales tax collection across state lines.

Two bills, one in the House (the Marketplace Equity Act) and one in the Senate (the Main Street Fairness Act), have been introduced to do just that. There appears to be growing support in Congress for the legislation.

Until it is enacted, keep an eye on your state tax department and the calendar. More states could join the online sales tax collection club before a federal Amazon tax makes it into law.

Photo of baby playing with Amazon box
by Adam Caudill via Flickr Creative Commons

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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