Amazon starts collecting Tennessee sale tax Jan. 1 - | Chattanooga News, Weather & Sports

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Amazon starts collecting Tennessee sale tax Jan. 1

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NASHVILLE — Christmas will come a little late for Tennessee tax collectors in 2013, but come it will beginning Jan. 1 with officials expecting a multimillion-dollar revenue boost as online retailing giant starts collecting state sales taxes on items it sells.

This holiday season is the last tax-free spree for state residents to purchase books, music, clothing and other items on Amazon without having to pay state and local sales taxes.

That's because under a 2012 state law that goes into effect with the start of the new year Amazon is required to collect Tennessee's 7 percent state sales tax and an average 2.5 percent local option sales taxes on items sold by the online retailing giant.

Read more from our partners at the Times Free Press.

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