Amazon to start collecting states sales tax on March 1st

LITTLE ROCK, Ark.(KTHV) - If you are planning to make a large purchase on Amazon, you might want to consider doing it before on Tuesday, February 28 at midnight.

Keshari Thakali of Little Rock is a frequent Amazon shopper. She said she shops on the website at least once a month.

Amazon shoppers like Thakali, desperate to grab some extra savings online, are rushing to beat a midnight deadline for avoiding Arkansas sales tax.

"I guess I really wasn't aware it was happening tomorrow," she said. "Maybe, I'll get online and search for things I may want or need."

But, Amazon's decision to collect sales tax is not a deal-breaker for Thakali. She'll still use the website because she said "there's a lot of things you can get on Amazon that you can't get at local stores."

It is projected that online sales tax collection on in-state purchases would amount to about $32 million a year and some estimates put that figure at more than $50 million a year.

"It's kind of annoying to pay a little extra on sales tax, but I understand that the state is losing a lot of revenue with people not paying tax on purchases they make on Amazon," she said.

Thakali is sticking with online shopping because it saves her time.

"I can get two days and free shipping, but I do try to support local businesses anyway," Thakali admitted.

But, the tax-free buying binge will be over in several hours.

Currently, sales tax in Arkansas is 6.5 percent and if you buy directly from Amazon instead of other retailers on the site, you can avoid paying sales tax.

© 2017 KTHV-TV


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