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Amazon Sales Tax: The Battle, State by State

Tennessee

Amazon reached a deal with Tennessee in October.

The online retailer will begin collecting sales taxes from purchases in the state starting in 2014 in exchange for bringing new jobs into the state.

Amazon recently opened two distribution centers in Tennessee, which employ 1,500 workers. It will add another 2,000 full-time jobs and other season employees, in the near future.


California

Amazon said in September it will collect sales tax from customers by 2013.

State lawmakers said they would delay the passage of a new law, which would require Internet retailers with physical offices in California to collect sales tax, until September 2012. In exchange, Amazon agreed to stop pursuing a ballot measure to repeal the law and to lobby Congress to pass federal Internet sales-tax legislation.

The law would go into effect in September 2012 if Congress doesn't enact federal legislation by then. If Congress does pass a law, then the California legislation would go into effect in January 2013.

Amazon also intends to build more facilities in California. It also agreed to create 10,000 full-time jobs and hire 25,000 seasonal employees in the state by 2015. Amazon originally said it would hire 7,000 full-time workers.

The concession will also allow many affiliates to get back into business. Amazon previously cut ties with more than 10,000 affiliates in the state on July 1.

Amazon sent an e-mail to former California affiliates on Oct. 4 welcoming them back to the program: "As you may have heard, California Gov. Jerry Brown has signed legislation repealing the law that had forced us to terminate our California Associates," Amazon said. "We are pleased to invite all California Associates whose accounts were closed due to the prior legislation to re-enroll in the Associates program."

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