Why doesn't Amazon charge sales tax?

[ehrenfest]

I've noticed that there is never any tax on anything I buy from Amazon. How is this possible?

 

[WardenOfTheMint]

Maybe the shipping charges offset the $$$.

 

[binzing]

All internet stores don't have tax...from what I've seen.

Don't know how they do it.

 

[rewebster]

there's no tax on interstate mail order items/sales

 

[Moonbear]

They don't have a physical store in your state. If your state expects you to pay use taxes of anything purchased out of state, you still owe taxes on it. I'm not sure if anyone living in the state where they are headquartered would have to pay taxes...not a physical storefront, but that's the state they are selling from.

 

[moose]

I've noticed that there is never any tax on anything I buy from Amazon. How is this possible?

You only have to pay tax if the website is located in your state.

EDIT: Moonbear beat me to it, and explained it better.

 

[wildman]

Sales tax only applies if you are buying something locally. Normally states don't apply sales tax on out of state sales. If they did, then Amazon would relocate and the state would lose a bunch of other taxes.

 

[chroot]

If the company is headquartered in your state (and thus pays taxes in your state), then Amazon must charge you sales tax directly. If the company is not headquartered in your state, they are not authorized to collect sales taxes. Instead, you are supposed to report these sales on your tax returns, and pay sales tax on them at that time.

Of course, in practice, no one ever does this.

- Warren

 

[ehrenfest]

So, how come I had to pay sales tax when I ordered something on barnes and nobles website? Does that mean they are headquartered in the state where I shipped the item? Or is it because they have stores in that state?

 

[moose]

So, how come I had to pay sales tax when I ordered something on barnes and nobles website? Does that mean they are headquartered in the state where I shipped the item? Or is it because they have stores in that state?

Their headquarters are in New York.

EDIT: I'm pretty sure...

 

[mgb_phys]

Actually amazon are in trouble for this at the moment - you have to pay sales tax if you have a physical presence in that state.
So for instance if you buy a Mac form the online store but live in New York you pay tax because apple has a mac shop in New York.
Amazon claim that their distribution centres aren't part of their company becaue they are run by a wholly owned subsiduary - and so don't have to collect sales tax.
The most likely out come is that they will simply close these centres (or threaten to) and open them in more accomodating states.
Sales tax really needs a re-think for online sales.

 

[Moonbear]

So, how come I had to pay sales tax when I ordered something on barnes and nobles website? Does that mean they are headquartered in the state where I shipped the item? Or is it because they have stores in that state?

It's because they have stores in that state.