Amazon.com shoppers from TN will start paying sales taxes - Action News 5 - Memphis, Tennessee

Amazon.com shoppers from TN will start paying sales taxes

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(WMC-TV) – If you logged on your computer to do holiday shopping in 2013 and snagged a gift from Amazon.com, there's a good chance it was shipped from a giant warehouse just like the one in Tennessee.

But, this holiday season was the last one you'll be able to shop there, tax free.

The next time you shop on Amazon you will be required to pay sales tax. Something Amazon shoppers have been exempt from, but after years of warnings, the tax break is over.

Amazon Spokesperson Erik Airleight said, "Analysts have noted with or without sales tax, Amazon still has the lowest prices, so we don't think it will really effect customers that much."

Amazon officials say with online shopping so popular, and convenient, they don't expect to see a drop in Tennessee customers, just because they will start paying sales taxes.

He also said, "We feel confident our customers will still come back to Amazon.com for great deals."

Brittney Babbitt is owner of The Sticker Lady, a small home-based business that uses Amazon.com to sell its products. The business grew by 70 percent once she started selling on Amazon, and sales increase by another 80 percent on Cyber Monday.

Babbitt recently relocated to Rutherford County, Tennessee from California, and had no idea about the sales tax collection.

Governor Bill Haslam signed the bill into law back in 2012, but gave Amazon two years before they were to start collecting sales taxes.

He's said in the past that the state is expected to generate millions of dollars once Amazon starts collecting the sales tax.

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