Will Amazon’s Tax Collection Change Your Spending Habits?

By Kristi Reed and Jon Gargis

A sales tax loophole in Georgia is set to close next month.

On Sept. 1, online retailer Amazon will begin collecting a 4-percent sales tax from Georgia residents, which, according to the Wall Street Journal, may be higher in certain counties and municipalities.

Last year, Georgia lawmakers passed legislation requiring online retailers to collect a sales tax. The law went into effect in January, but Amazon did not immediately comply. 

Now the state is set to collect up to $16 million a year in online sales tax, much of which is expected to come from Amazon. 

Georgia law requires consumers to pay sales tax on any item purchased for storage, use or consumption in Georgia. If the out-of-state retailer does not collect the tax, the consumer is expected to file a return remitting the tax.

Will Amazon’s sales tax collection lead you to buy less from the retailer, or will offers such as free shipping on certain purchases keep you coming back? And will the change encourage you to buy more items from local retailers? Tell us in the comments.