The merchandise one purchases are more than likely sitting in anFBA warehouse. These warehouses require companies and sellers to collect salestax. These warehouses require sales taxes to be collected in these states:Ohio, Massachusetts, Minnesota, North Carolina, Kansas, Illinois, California,Pennsylvania, Washington, Nevada, Georgia, Louisiana, South Dakota, Oklahoma, Texas,and Florida.
Now knowing where these warehouses exist Steve would have to payCalifornia taxes with the warehouses since it is located in California and thetax rate is based on the shipper’s location. With the Minnesota case, Stevewould have to pay Minnesota sales taxes as there is a warehouse located inMinnesota. Since Steve lives in Minnesota and now there’s a warehouse inMinnesota Steve would pay the state sales tax for Minnesota. I looked at my recent ordersand it seems that everything that is actually sold by Amazon is taxed. Ibelieve that Amazon has warehouses in all these states, so therefore they cancollect tax on everything they sell. And if Amazon does not have warehouses inall the states, and the people that order out of these states, they should nothave to pay taxes on the item. I found some that still got me the two-dayshipping with prime, but was fulfilled by Amazon, and I did not have to pay taxon those orders.
So, to answer the question I pay tax on orders sold by AmazonI do not pay tax on orders that are not sold by Amazon and they are not locatedin one of these states. Even if the orders are fulfilled by Amazon and give youprime shipping you do not pay taxes on them. That is what I have noticed on theorders that do not directly come from Amazon. The reason that some sellersdon’t tax, is because they do not ship through the FBA warehouses, and so Idon’t have to pay tax on those items.
Sales taxes are centered around the taxrate at the shipper’s location, so the local sales tax rates at these newcenters could affect your sales tax obligations. Overall, it is veryinteresting to learn how sales taxes work. Knowing that sales taxes areaffected by the state you live in. If you buy something that is based inCalifornia like in the example with Steve, and there is no FBA warehouse inyour state then you pay the state sales tax of California. Also knowing that ifI were to buy something that is located in a state without an FBA warehouse, Idon’t have to pay taxes on that item. It is interesting to know how state tax lawswork and how much you pay on an item when you purchase it online.
Tax rates aredifferent depending on what state you live in, so depending on where on livesand depending if there is an FBA warehouse in your state or not, will base thetaxes you pay on a specific product. Knowing that now should give one an ideaof what to look for when one buys something online. If you can find what youare looking for and if it is located in a state without sales tax you can savemoney. I just cannot believe that there are some states that do not requiresales tax on the items they ship or purchase, and how others can have sales taxfrom other states. It is also interesting that if you live in the same state asan FBA warehouse you will pay the state tax of where that warehouse is locatedand however much the tax rate is, is what you will pay. The shipper’s locationis the amount you pay in some cases, as it could be the same or it couldsometimes be different depending if you are in the same state as the shipper’slocation.
It is also interesting to know that some states do not have the statesale’s tax rate and do not collect taxes on items they ship out of those statesto states that also do not have the state tax rates.