Washington Sales Tax

Discussion in 'Off-topic' started by AtlPhilip, Jan 12, 2018 at 4:36 PM.

  1. AtlPhilip

    AtlPhilip Proud GCO member.

    Any e-tailers out there? Sales tax experts? I have a question.

    Given that SCOTUS has ruled many times that you only owe sales tax in states where you have a nexus (see Quill Corp. v. North Dakota). Also given that Amazon has fought internet sales tax collection for years.

    How is Washington state getting away with passing a law in direct conflict with multiple SCOTUS rulings?

    Why is Amazon suddenly not fighting WA when they have fought every other state?

    P.S. Destination based sales tax is a liberal money grab. Unfortunately, the blue republicans in the Ga legislature are greedy and dumb, so they love it.
    Last edited: Jan 12, 2018 at 4:43 PM
  2. RedDawnTheMusical

    RedDawnTheMusical Well-Known Member

    As I recall, Amazon is required to charge you sales tax if they have operations in that state and they are the seller of the product you're purchasing (e.g. "Sold By Amazon, Inc."). Since Amazon has operations (such as warehouses) in almost all states, they are required to charge sales tax in those states. However, if Amazon is merely a retailer for a transaction where the product is actually being sold and fulfilled by someone else, then no sales tax is charged unless the actual seller has operations in your state. I purchase a lot from Amazon and all orders that are sold and fulfilled by Amazon have tax on them. Other items sold by others through Amazon that I purchase are hit or miss with the sales tax charge - just depends on if the seller is local or not.

  3. Adam5

    Adam5 Atlanta Overwatch

    I don’t have a link handy, but I read a while ago that if a company ships over a certain dollar amount into state on an annual basis, they must charge tax in that state.
    Last edited: Jan 12, 2018 at 10:06 PM
  4. AtlPhilip

    AtlPhilip Proud GCO member.

    That changed Jan 1. Per Washington law, Amazon is collecting sales tax is being collected on merchant fulfilled shipments to WA.

    Correct, that is WA law now. But SCOTUS has already ruled on this quite clearly. And why did Amazon suddenly cave on a struck down law after years of fighting it?
  5. Malum Prohibitum

    Malum Prohibitum Moderator Staff Member


    Amazon has been collecting sales taxes in all states with a sales tax (45 of them) since April. Ironically, it has charged sales tax in Washington since 2008 (almost a decade).

    It does not charge sales tax for sales from third party vendors.
  6. AtlPhilip

    AtlPhilip Proud GCO member.

    Perhaps I wasn't clear. Amazon is now collecting and remitting sales tax for sales from third party vendors (called "merchant fulfilled") that are shipped to WA state.