Amazon to begin collecting Virginia sales taxes |
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Amazon.com Inc. will begin collecting sales taxes from customers in Virginia as part of a deal with the state's governor.
The Washington Post reported that Amazon (NASDAQ: AMZN) operates a distribution center in Northern Virginia and will open two more in the Richmond area this fall, and it has faced criticism from state officials and Virginia bricks-and-mortar retailers.
The tax issue has been a recurring one for Amazon, as the company has negotiated separate tax-collection agreements – or in some cases exemptions – with various states including California. In December, the company's deals with South Carolina and Tennessee were questioned by legal experts who said they might be unconstitutional because they granted Amazon an exemption that left other online retailers at a disadvantage.
In the midst of all the piecemeal legislation passed by states, Amazon has been lobbying for bipartisan federal legislation enabling states to require online retailers to collect sales tax in some cases. The law would bring consistency to online tax collection by offering incentives to states that join with others in setting standardized sales-tax codes.
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