Earlier this week eBookNewser brought you news about Amazon’s support for sales tax legislation currently before Congress. It was Amazon’s hope that Congress would pass a law clarifying who had to collect what sales tax in which states. Unfortunately, it looks like Pennsylvania didn’t want to wait for the new law.
Yesterday the Pennsylvania Department of Revenue announced that they believe their current regulations require Amazon and other internet based retailers to collect PA state sales tax. According to the DoR, Amazon has to collect sales tax for pretty much the same reason that other states have come up with: affiliates. Because Amazon does business with someone in PA, the state expects Amazon to collect sales tax.
Surprisingly, Amazon does not appear to have responded yet. In the past Amazon has cut ties with partners whenever a similar tax law has been passed. Perhaps they plan to fight this in court. We shall have to wait and see.