Online Book Buyers Will Start Paying Sales Tax

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Saturday, April 17, 2010

As competition increases between Kindle and Apple's iBooks platform, so is the pressure on Amazon and other online retailers to collect sales tax at the purchaser's location. Daily news feeds hit the internet about state and local governments in budget shortfalls due to decreasing sales tax dollars.

While the details are technical and 'legal', the short version is that customers will pay sales tax on many purchases of online books in the future. It should be noted that this is not Amazon or other retailer's "decision", but legally required based on long standing sales tax laws.