In recent news, Arkansas is yet another state that has passed the so-called “Amazon Tax”. In addition, Connecticut and Hawaii are both looking at similar laws. As many of my readers know, this tax makes companies that use affiliate marketers liable for collecting sales tax in the state. As it stands now, most online retailers who do not have a place of business in the state (other than affiliate marketers) do not collect sales tax. Last year, a similar bill killed the affiliate marketing business in Colorado.
What is now also being reported is that one of the bigger sponsors for the so-called Amazon Tax is another large company – Walmart. As Walmart has retail stores in almost every state, it collects sales tax from those who purchase online. This puts it, and stores such as Target, K-Mart, and Best Buy, at a disadvantage over Amazon and Overstock.com as the latter do not collect sales tax.
Although Amazon, Overstock, and other online-only companies have attempted to stop such measures, it appears that the number of states looking to tax online is growing and growing. Eventually, it appears that even online companies will have to collect taxes.
As always, if you are a small business with questions about whether you are doing business correctly, you can reach me at 720-258-6647 or firstname.lastname@example.org.