Amazon starts collecting Tennessee sale tax Jan. 1
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 Amazon.com 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.
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