Hopefully online shoppers in California were able to splurge a bit yesterday before the new sales tax law took effect. Large online retailers such as Amazon are now required by Californian law to charge the state’s residents sales tax on purchases. CBS News reports that the tax “could bring the state $80 to $100 million a year.” Explaining it further, California Congresswoman Jackie Speier stated that “When you’re losing that sales tax revenue, that means it’s affecting your roads, it’s affecting the resources for local government, it’s affecting the resources for education.”
The inclusion of California now brings the total number of States that Amazon charges sales tax in to eight. The other seven are Kansas, Kentucky, New York, North Dakota, Texas, Washington, and Pennsylvania. Looking ahead to the future, New Jersey, Virginia, Indiana, Nevada, Tennessee, and South Carolina are all soon to follow.
So how does this affect your online purchasing decisions? The question now for the rest of the States may very well be, “When?” It’s amazing how fast a year can come. It only seems like yesterday when Amazon was granted a stay of one year before this became a reality.