July 29, 2014

Amazon customers to start paying sales tax

Buying items from a major online retailer will soon cost Wisconsin customers a little more money. Amazon.com will start collecting sales tax on November 1 for orders placed by Wisconsin customers.

State Department of Revenue spokeswoman Laurel Patrick says the company has not collected taxes in the past because it lacked a physical presence in Wisconsin. That will change next year though, after Amazon recently announced plans to build a distribution center in Kenosha.

Retailers without a bricks and mortars location in the state are not responsible for charging sales tax. However, Patrick says customers are still expected to pay it. Those use taxes are supposed to be reported on state tax filings, but Patrick admits many people do not follow through with the requirement.

Rick Schuh, WHBY