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Amazon begins collecting sales tax in California on September 15th

Amazon begins collecting sales tax in California on September 15th


Starting tomorrow, Californians will be subject to sales tax when buying products from Amazon.

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We knew it was coming, but that won't make it any easier for consumers: Amazon will begin charging sales tax to California residents starting tomorrow, September 15th. The policy follows similar changes in states like Texas and New Jersey, which began affecting Amazon consumers earlier this year. Previously, the online retailer had been able to avoid the issue in California by not having a physical presence in the state, but new legislation forced the company to change its mindset.

Last year, Amazon offered to create thousands of jobs in California if the state were to push the tax enforcement date to 2014, but Democratic lawmakers ultimately rejected the offer. Despite the setback, the company still intends to construct distribution centers throughout California, bringing with it 10,000 full-time and 25,000 seasonal employees by 2016, according to CNN. The Financial Times recently reported that these new distribution centers will likely pave way for decreased shipping times — a selling point that a number of companies, including eBay and UPS, are aggressively competing for. Regardless, it appears many Californians are making a quick dash to the online store before the change is implemented, with CNBC reporting that one couple plans to spend up to $12,000 this week just to avoid the sales tax.