Amazon 'Prime Day' features sales tax in 45 states this year
Ecommerce giant Amazon’s “Prime Day” discount promotion begins Monday with a notable caveat. This year’s 30-hour promotion marks the first time the Seattle-based retailer will collect sales tax nationwide alongside thousands of discounted sale offerings.
Amazon started collecting sales tax in five remaining holdout states last April after a years-long legal battle regarding whether online retailers were subject to the same tax rules as traditional “brick and mortar” operations, Forbes notes. In total, Amazon charges sales tax in 45 of 50 states. Only New Hampshire, Delaware, Montana, Oregon and Alaska – states that do not collect sales tax – are exempt.
This is the first time “Prime Day” will be affected by the change. The company has held the sales promotion for subscribers to its $99 per year service, which provides free shipping, since 2015. The event aims to boost sales and subscriber totals during typically-slow summer months.
“Prime Day” runs for 30 hours this year, from Monday night at 9 p.m. ET through Wednesday at 3 a.m. Previous editions of the event ran for 24 hours. Amazon says the promotion will feature 100,000 new deals for shoppers across 13 countries, including the United States and China.
Last year’s “Prime Day’ generated between $500 million and $600 million in revenue, according to USA Today.
