Amazon feud with states over sales tax turning ugly

states demand amazon collect sales tax
states demand amazon collect sales tax

The tentacles of Amazon are long, and many states that are suffering tax income shortfalls are itching to squeeze some money out of their state residents' online purchases from the behemoth. The problem isn't with the law, most of the time, but with the collection, and Amazon is caught between the desire to maintain its present structure and the desire to keep this price advantage. A bill under consideration in Connecticut that would require Amazon to collect sales tax on purchases by that state's residents has the company threatening to drop Connecticut partners from its site.

What's the issue here? The most common Amazon transaction, where you buy an item from its inventory, is pretty straight-forward. Amazon collects sales tax from buyers in those states where it has a physical presence: Kentucky, North Dakota, and Washington, as well as New York.

Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.
The 10 Most Overlooked Tax Deductions
Don't overpay taxes by overlooking these tax deductions. See the 10 most common deductions taxpayers miss on their tax returns so you can keep more money in your pocket.
Read MoreBrought to you byTurboTax.com
States with the Lowest Taxes and the Highest Taxes
Where you live can help or hinder your ability to make ends meet. A myriad of taxes—property, license, state and local sales, property, inheritance, estate and excise taxes on gasoline—eat away at your disposable income. Weighing the tax landscape against your financial picture lets you stretch your dollars. Here's a roundup of the highest and lowest taxes by state.
Read MoreBrought to you byTurboTax.com
What to Do After You've Filed an Income Tax Extension
No matter how or when you file your taxes, here's a guide to next steps.
Read MoreBrought to you byTurboTax.com
Child Tax Credit Calculator and Top 7 Requirements
The Child Tax Credit can significantly reduce your tax bill if you meet all seven requirements: 1. age, 2. relationship, 3. support, 4. dependent status, 5. citizenship, 6. length of residency and 7. family income. You and/or your child must pass all seven to claim this tax credit.
Read MoreBrought to you byTurboTax.com