Smaller states rejoice as Amazon finally collects sales tax

IndustriesAssociated Press

Many online shoppers in the United States have for years had to pay state sales taxes whenever they buy goods from Amazon.

But the Seattle giant has dragged its feet on collecting sales taxes in small and sparsely populated states where it doesn't have a physical presence.

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That's quickly changing this year. And state governments looking to balance their beleaguered budgets are rejoicing as they brace for a boost of tax revenue from Amazon sales.

Customers in at least 10 states will begin paying sales taxes on Amazon purchases for the first time this winter. Tax collection begins Wednesday in half those states: Mississippi, Missouri, Rhode Island, South Dakota and Vermont.

The move follows last month's U.S. Supreme Court ruling rejecting a challenge to a Colorado law affecting online sellers.