Amazon hurt by new tax rules in Tennessee
Tennessee joined 19 other states this year in requiring Amazon to collect sales taxes on what it sells because the company operates distribution facilities in the state, including its giant warehouses in Chattanooga and Charleston, TN.
Wednesday, April 30th 2014, 7:48 AM EDT by
Adam Smith says he was a frequent buyer of items from
— until this year.
Smith, a senior marketing publications specialist at Mueller Water Products in Chattanooga, says he is shopping elsewhere since Tennessee began imposing state and local taxes on Amazon sales in January, adding 9.25 percent to the cost of such purchases.
"I very rarely shop at Amazon anymore, whereas in the past I used it quite frequently, if not weekly," Smith said Tuesday. "No taxes plus free shipping [on most items] is what led me to Amazon. Now that I have to pay taxes, I choose to look elsewhere."
Smith is among a growing number of Amazon customers who are trimming their purchases from the world's biggest online retailer in favor of other online merchants not subject to state and local sales taxes.
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