SALT Report 1137 – Tennessee Governor Bill Haslam has announced that an agreement has been reached with Amazon under which Amazon will begin to collect Tennessee sales taxes beginning January 1, 2014, unless a national solution is addressed before that time.
Currently, Tennessee law requires consumers to pay use tax when making online purchases from any retailer that does not collect sales tax. After 2013, responsibility for the collection and remittance of Tennessee sales tax will shift to the company. However, if Congress acts before January 1, 2014, all online retailers will be required to collect sales tax once federal legislation is enacted.
The agreement will be presented to the General Assembly as legislation for consideration in January.
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