Amazon shoppers receive tax notifications

Amazon shoppers receive tax notifications

Posted: Updated:

Amazon shoppers in Tennessee are seeing a tax notification in their email inbox.

Amazon is fulfilling an agreement with the state to notify customers they are responsible for paying sales tax on all purchases from the previous year.

"It is [for] any Internet purchase that you made in 2013 and did not pay taxes on," explained Franklin Certified Public Accountant Terry Hendrixson.

Hendrixson told News 2 that it has been left to the consumer to claim and pay sales tax on any and all purchases made online in which they did not pay a sales tax, but few actually do.

"It's cost states and local governments millions and millions of dollars in revenue," he said.

Amazon shoppers have not been charged a sales tax on purchases, but that changed as of January 1.

When the Internet retailer built distribution centers in Tennessee it became required, by law, to charge and submit sales tax to the State Department of Revenue.

"States have realized they are losing a large amount of revenue from Amazon and all Internet traffic is increasing dramatically," Hendrixson said.

According to the Department of Revenue Web site, it estimates the change will increase state revenue by $17,551,164, and another $7,414,836 for local governments.

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