Amazon to Collect Sales Tax from Nevada Residents
On April 23, 2012, Nevada Governor Brian Sandoval and Amazon.com announced an agreement that Amazon would begin collecting sales tax on purchases made by Nevada residents starting at least January 1, 2014.
Even when Nevada residents make a purchase that doesn’t involve paying sales tax, Nevada law requires them to remit the equivalent sales tax to the state. Few residents do so, however, and for this reason Amazon.com has come under fire from states who argue that its failure to collect sales tax has given it an unfair advantage over local retailers, mostly small businesses, operating within each state.
With this new agreement, small businesses will enjoy a more level playing field with the online retailer and states can recapture some $23 billion in lost revenue.