Amazon Can Support The Internet Sales Tax Because Amazon Is Exempt

Nevada Gov. Brian Sandoval claims that Nevada is missing out on somewhere between $114 million and $200 million in uncollected sales tax due to residents purchasing products from remote sellers. He and some Nevada legislators are leaning on Congress to pass the MFA, so that they can start collecting this revenue, but Nevada could have been collecting most of these taxes. As early as 2008, Amazon had two Nevada distribution warehouses clearly establishing the physical nexus necessary for the state to impose tax collection and remittance requirements on the online retailer according to the Supreme Courts Quill v. North Dakota decision, which is the law of the land. However, Amazon wasnt complying. Rather than force Amazon to comply with sales tax collection statutes, in April 2012 Sandoval announced an agreement with Amazon, stalling Amazon sales tax collection from Nevada residents until 2014. In order to get Amazon to build a warehouse in Virginia, in 2011 Gov. Bob McDonnell not only exempted Amazon from collecting sales tax until September 2013, but also approved $3.5 million in grants from the Governors Opportunity Fund for the Virginia facilities. Then in 2013 Gov. Bob McDonnell bemoaned the lack of revenue collection from remote sales. Without collection from the largest online retailer, Virginias House Appropriations Committee estimated $251 million in revenue coming from remote sales tax collections. As long as Congress passes the MFA, Internet sales tax collection is included as part of his 2013 transportation plan and Virginia can avoid an automatic sales tax hike. But Virginia doesnt need the MFA to collect online sales tax; they are just waiting for the clock to run out, and an automatic sales tax hike. Two of the biggest proponents of Marketplace Fairness Act are Tennessee Gov.
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