Ohio – State Budget Plan Includes New Rule For Amazon, eBay, Others To Collect Taxes On Sales By Vendors

Amazon collects Ohio sales taxes for items it sells, but not for all vendors selling things on the Amazon marketplace. (AP)

CLEVELAND, Ohio – A way around paying Ohio sales taxes for things bought on Amazon is to purchase goods through many of the vendors selling on the website, rather than from Amazon itself. Same goes for much of eBay and many other places where people make purchases on the internet.

That tax dodge could end soon, under a revision to state law for “marketplace facilitators” deep in the 3,514-page budget bill approved last month by the Ohio House. The bill is in the state Senate, with a decision due by the end of June.

Amazon four years ago this month began collecting Ohio sales taxes on what it sells, making Ohio the 25th state. Since then, Amazon has expanded the practice to every state with a sales tax.

But the Amazon marketplace is different. The marketplace is how outside vendors sell things through Amazon. Only small print often identifies the difference when making a purchase on the Amazon website. Currently, Amazon collects taxes on such sales for a handful of states – but not Ohio.

“We are only allowed to collect sales tax on behalf of sellers in states that allow us to do so by having marketplace laws in place,” Amazon spokeswoman Jodi Seth said via email. “There are 15 states that currently have such laws.”

For The Full Story: cleveland.com

by rich exner
june 5, 2019