Amazon Now Charging Sales Tax To Iowans
2017 is here and with it comes changes. Now, when Iowans order from Amazon they will be charged a 6% sales tax.
The WQAD report states that "the law in Iowa is that all retailers with a physical store presence are required to charge customers a sales tax", even if they order it from their online purchase center out of state.
Amazon does not have a store front presence and because they are online only, their customers in the past didn't have to pay a sales tax. Amazon decided to start charging the sales tax on their own according to the Iowa Department of Revenue, as stated in the report.
In the past, the Iowa Department of Revenue estimated the state was loosing between $18-24 million from online purchases with no sales tax.