Amazon will start collecting sales tax in four additional states starting next month.
Customers in Hawaii, Idaho, Maine, and New Mexico — the four remaining states that did not require sales tax payments on Amazon purchases — will start paying tax on April 1, CNBC reported on Friday. We’ve reached out to Amazon to confirm the new policy and update this story when we hear back. Update: Amazon confirmed the CNBC report.
In February, Amazon added 10 more states where it now collects sales tax.
Amazon doesn’t collect tax in Alaska, Delaware, Oregon, Montana, and New Hampshire, as those states do not have sales tax.
Amazon has battled several states in the past decade over the collection of sales tax and seven years ago it even cut ties with affiliates in states like Connecticut because of the issue. But now, as the company has more physical buildings around the country — fulfillment and distribution centers; data centers; brick-and-mortar stores; etc. — it is forced to pay sales tax because of the 1992 ruling in the Quill Corp. v. North Dakota case.
Traditional retailers have argued that Amazon should have to collect sales taxes in states where it does business, with retail groups saying that the concept levels the playing field between physical and online retailers.