Amazon Will Start Charging Florida Sales Tax May 1

Categories: Business

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photo via Stephen Woods' Flickr | CC2.0
We're sure that after yesterday, the last thing you want to hear about is more taxes. But you'd better get ready to pay a lot more of them if you're a frequent online shopper. Amazon will begin charging Floridians a sales tax May 1, just like any brick-and-mortar store.

Florida's sales tax law has a bit of a loophole. If a company doesn't have a physical presence in the state, it doesn't have to charge sales tax for online purchases.

Amazon has dozens of warehouses and fulfillment centers scattered across the United States but has been operating without one in one of the nation's largest -- and, to a degree, most geographically isolated -- states. That, of course, has meant shipping to Florida can take a bit longer on average, but it does end up saving you from paying that 6 percent sales tax.

Well, Amazon is finally opening a new warehouse and shipping center in Ruskin, Florida, in the Tampa Bay area. It's expected to be completed and open by the end of the year, just in time for Christmas shopping. Another warehouse is also planned for Lakeland in Polk County. That means Amazon is no longer covered under the loophole.

In order to come into compliance, Amazon will begin collecting Florida sales tax May 1. This is bad news for penny-pinchers but isn't such a rough deal for the state overall.

The Florida Retail Federation has estimated Amazon will produce $80 to $90 million in new taxes for the state. Of course, the construction of warehouses in Florida will bring more jobs to the state and shorten delivery times as well.

That's also good news for local retailers who've complained that the sales tax loophole presents an unfair advantage for online retailers. The Florida Retail Federation and the Florida Chamber of Commerce have long pushed for the loophole to be eliminated and require online retailers to collect sales tax.

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79 comments
Rich Moyle Jr.
Rich Moyle Jr.

Jesus Christ, people. It's a sales tax. You say the word "tax" around a Floridian and by their reaction you'd think the whole world was coming to an end.

Rich Moyle Jr.
Rich Moyle Jr.

@The Shalimar Hotel: what one earth does Obama have to do with Amazon charging sales tax?

The Shalimar Motel
The Shalimar Motel

in Delaware nobody pay taxes and there is warehouse ..... thanx a lot obama.... seriously .. :(

Frank Castle
Frank Castle

it better be next day then , if there is a tax now

Rogelio Madan
Rogelio Madan

Good! This helps local retailers and businesses.

Barbara Guttman
Barbara Guttman

That will not be a big deal... still don't have to pay for parking , gas, and hassle of a retail outlet.... And they do have great customer service( in my experience)

Claudio Paz
Claudio Paz

let me see, taxes and shipping charges... I will go the mall and save on the shipping charges.

Carl Snyder
Carl Snyder

looks like more purchases from eBay and other companies if it comes to the same item for the same price.

Estrella Eguino
Estrella Eguino

Amazon has a warehouse in Delaware. Nobody pays sales taxes there. Amazon is the best! and Jeff Bezos made it on his own. He's not part of the cartel. I will still buy from Amazon - I'll just have it delivered to Delaware and pick it up on my way to Atlantic City every month :)

Susan El-Masri
Susan El-Masri

Have you all forgotten about the Bush years? The trillions spent on Wars?

Travis Langdon
Travis Langdon

I thought the President said NO NEW TAXES!!!!!! So why are you???

Peter McGuire
Peter McGuire

Thanks Obama! Him and his liberal cronies have been plotting this socialist money grabbing scheme since before he was in office!

Raquel Reyes-Lao
Raquel Reyes-Lao

Elisa Reyes-Lao but whyyyyy maybe ppl need to stop buying cats on amazon!!!

David Hualpa
David Hualpa

Money money money greed greed greed people still don't need much. etc etc etc.

Gregory Maestre
Gregory Maestre

As long as I can still get better prices and free delivery and not have to go to a store, I am good.

Georgina De Armas
Georgina De Armas

lol the "i'm never shopping there again" comments always crack me up! i love amazon. my stuff always comes on time with no issues. been ordering from there for years and i'm not stopping now. i am more annoyed by them using Lasership like someone else mentioned.

Nikolas Obrenović
Nikolas Obrenović

Well that sucks. Migjt remove prime and call it a day. Been a member for years but yea sales tax is dumb for online.

AmandaSara
AmandaSara

Some of us buy on line because we are caregivers, handicapped or somehow unable to leave the house. Yes, an additional 6 or more % is a huge deal. I will just re route my purchasers to other sellers which in fact their prices are in many occasions less than Amazon.

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