Amazon now charging sales tax in Florida, building 2 fulfillment centers
Updated On: May 02 2014 12:14:03 AM EDT
Amazon.com is the largest online retailer in the world but its sweeping success comes with some growing pains.
The Seattle, Washington, based company is building two, 1 million-square-foot fulfillment centers in Florida. Spending about $300 million, they are putting one in Hillsborough County and the other in Polk County.
The move brings 3,000 jobs to Florida but takes our online tax-free status away because in 1992, the U.S Supreme Court ruled, "Retailers can be forced to collect tax in states where they have a physical presence."
"Florida's six percent sales tax can add up online,” said Leisha Cannon, who told Local 10’s Todd Tongen that she will use Amazon less now. “Especially if you are making multiple purchases or big ticket items. For instance, I am going to buy this Go Pro Hero 3 camera for $399.99. When I go to check out, the shipping is free but the Florida sales tax is $24."
Amazon already collects state taxes in 21 states including California, Texas and New York. Florida will now be the fourth-most populous state to be taxed by Amazon and our 6 percent tax equals about $80 million a year in tax revenue for the Sunshine State.
As Amazon grows you can bet more states will follow.