Even if your state doesn’t require Amazon to collect sales tax on purchases, you’re still supposed to be paying any applicable tax to the state when you file your annual tax returns. Virtually no one does. That’s why Amazon is e-mailing customers in Tennessee to remind them of their obligation.
“You may owe use tax on purchases you made from Amazon.com LLC during the previous calendar year,” reads an e-mail quoted by the Chattanooga Times Free Press.
The e-mail then goes on to detail the customer’s Amazon purchases for 2012 along with a link to where the tax can be paid directly to the state.
See, even though Amazon won’t be collecting sales tax from Tennessee residents until 2014, the online retailer did agree to e-mail these reminders to Tennessee Amazon shoppers.
The state says that it could earn up to $30 million this year if Amazon shoppers pay up. Of course, not everyone is willing to hand over the money just yet.
“If they want sales tax, they need to charge it at the time of the order, just like every other legitimate business,” the paper quotes one resident as saying about the tax. That’s actually not quite true, as these use taxes have been in place for more than half a century, aimed at collecting taxes on out-of-state purchases that were used by state residents. In the 2011-12 fiscal year, the state took in $6.3 million in use tax from consumers.
An company rep says that it provides the Tennessee customers with their purchasing information, not the state. Thus, state officials don’t know who spent how much on what at the website without paying taxes.
“As a general rule, there’s no information and no easy way for the Department of Revenue to come out and audit individuals,” the Amazon rep explains.
Thanks to Tim for the tip!
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