It looks like more states have passed legislation mandating marketplaces like Amazon to collect taxes, and submit returns, on behalf of third party sellers. Here is what we just received from them:
Based on changes to Arizona, California, Colorado, Maine, Maryland, Massachusetts, Nevada, North Dakota, Texas, and Utah States tax laws, Amazon will begin calculating, collecting, and remitting sales and use tax for all orders shipped to customers in these states on October 1, 2019.
Your existing tax calculation settings, order details, and payments reporting will update automatically to reflect this change. Changes to your tax settings or seller account are not required based on the state law changes. However, you may consider working with your tax advisor to determine if your business has any other ongoing tax remittance or reporting obligations.
Answers to common questions are available in the Marketplace Tax Collection FAQ.
For more information from Amazon or links to each state resource, see Marketplace Tax Collection FAQ
Thank you for selling on Amazon.
Since that now includes our home state, California, that is a relief. I imagine now it won’t be long until all states require this.
But is still leaves us open to abuse from state tax authorities for sales through our website. We still await a solution to that problem.