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January 30, 2015

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Nevada reaches agreement with Amazon on collection of sales tax

Brian Sandoval

Brian Sandoval

Gov. Brian Sandoval reached an agreement with online retail giant Amazon to collect sales tax on items it sells in Nevada, raising at least $16 million a year and tacking on 8.1 percent when Las Vegans hit the “checkout” button online.

The agreement, announced Monday, calls for the retailer to start collecting the sales tax in 2014 or whenever the federal government passes legislation requiring online retailers to collect the taxes.

Under a similar agreement with California, the company will start collecting sales tax there in September 2012.

Traditional brick-and-mortar retail stores have complained that online sellers have an unfair advantage because many don’t charge sales tax and aren’t paying their share for schools, roads and other government services.

Individual buyers are supposed to send in the sales tax to the state Department of Taxation.

Sandoval’s office said this deal would help in “relieving Nevadans from having to self-report use taxes from these sales to the state.”

The sales tax rate in Nevada varies by county, from 6.85 percent in some of the rural counties to 8.1 percent in Clark County.

Sandoval and Amazon, which has major warehouse and distribution centers in Northern and Southern Nevada, said in the statement that they would work jointly for federal legislation.

The Retail Association of Nevada has advocated for legislation requiring all online retailers to collect sales and use taxes. It estimated that the change to state law would bring in $26 million every two years.

“We’re very excited about this” agreement, said Bryan Wachter, director of public and government affairs for the Retail Association of Nevada. He praised the governor for working with Amazon. “It’s important to treat everybody by the same rules,” he said.

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  1. NewEgg. no tax.

  2. And so, Nevadans working at Amazon may lose jobs because of an 8.1% across the board price hike on goods.

    With so many other online choices, choices that do not charge tax, I'll buy else where. As a consumer, why would I want to pay 8.1% more when I don't have to do so?

  3. It's telling that Governor Sandoval put so much time and effort toward this and has done NOTHING to address the lack of a business, mining and gaming tax that is equitable.

  4. "Hey you libs, still hate the guy now."

    yep --- but still not as much as arrogant arses.

    "I swear he promised not to raise taxes."

    he didn't raise the taxes of his pals so calm down. you're just one of the little people so pay up and move along.

  5. It's amazing how making everyone play on a level playing field can be turned into a liberal or conservative issue.

    If you're going to tax business, tax it evenly and fairly. I'm pleasantly surprised by Sandoval. He's acting like what we need-- a pragmatist. Someone who is less concerned about ideology than doing what is right for the public. Depending on who the dems put up, he might just get this liberal vote.

  6. Amazon will put out of Nevada now.

  7. "Someone who is less concerned about ideology than doing what is right for the public."

    when Gov. Sunny makes -- neh, even suggests, mining pay tax on what they report in their shareholders report then I'll believe that statement. until then ....

    I will say he's head and shoulders better than Givons. By any measure.

  8. Let me see if I get this right. My Amazon purchases are going up 8.1%, and just about everything I buy I purchase through Amazon- great customer service and free shipping with a prime membership. And, the illegals still pay no taxes, get free healthcare and other welfare benefits.
    Is there something wrong with this picture?

  9. I thought for sure this was going to come when they bought Zappos. Surprised it's taken this long.

  10. Chunky says:

    Uncle Sam digging his way into our pockets deeper and deeper every day!

    When will it ever end? Never, until they basically just tell us what we can have!

    That's what Chunky thinks and he thinks it sucks!

  11. I am not a supporter or fan of this governor. However, kudos for this because it helps each and every one of us.

    There are three "steps" in the sales tax process. With brick and mortar retailers, the customer (1) pays the sales tax, and the retailer (2) collects it (what some refer to as the store "charging" sales tax). The retailer also (3) remits it to the state.

    With an online retailer, two things might happen. One is that the process is identical, meaning the retailer collects and remits the sales tax. As before, the customer pays it.

    The second thing that might happen is that the online retailer does not "charge" sales tax. It sounds like that was the case with Amazon. However, this does not change the current laws which require the user (i.e. customer) to pay and remit "use tax" (which is the same as the sales tax). In other words, you were already legally required to pay use tax to the state. Not many people actually do so, but it is the law.

    This agreement with Amazon simply shifts the collection and remittance burden off of us and back to the retailer, but it has no effect on who pays it.

    I don't want to be accusatory, but it seems to me that the angry commenters may all be guilty of tax evasion. Which means they are angry because either (a) they think this is a new tax or an additional burden on them, or (b) they can longer get away with evading the tax.

  12. I will always buy from the Least Expensive. I don;t care about American Workers, Corporations, Taxes, Delivery Charges, etc... I want the cheapest at my Door and if a few people die because of it - who cares! And I'm No Different from the Casino or Mining Interests in Nevada.

  13. So why has Amazon been CHARGING and COLLECTING Nevada tax on all the deliveries to my house? Is this FRAUD?

  14. I buy over $20,000 worth of stuff from Amazon because I use their "prime" feature that gives me free 2 day shipping / no tax on everything I buy. When they start to charge 8.1%, I will only use them IF the total price is lower than their competitors / shipping. 8% of 20K is $1,600. I sure the hell am not going to throw $1600 away (to bebe's mama or some illegal) when I can keep that money in my pocket. Simple as that. My guess is this will cause Amazon's (and any online retailer) to lose a ton of money when it is implemented which will mean lost jobs. So ....more taxes simply takes more from one register but will lose the same amount (or more) form another register. Pretty soon, we'll be as productive, industrious, and prosperous as the Russians. (pre glasnost)

  15. Q. When will the US get around to building a border fence along all of it's borders?

    A. When the US becomes a prison state - Marxist country. (to keep the people in)

    Example: The Congress got around to "bankruptcy reform" right before the markets crashed, while things were good and everyone was making money. Think they knew the bubble was about to burst and everyone would be going BK?

    Same with the illegals. They are allowing them to flood into our country knowing damn well the "American Dream" is about to become the "American Nightmare". They'll need scabs that don't give two chits about our Founding Fathers or our Constitution to keep the gov working when things hit the fan (dollar loses it's value, hyper inflation, civil unrest, new form of gov). If you think they reason both dems and reps let anyone enter our country and bankrupt our schools, social services, and hospitals is because they they like minorities, (well, maybe the dems), think again.

    I degrees. Re taxes. Hey, Sandavol. Instead of raising taxes to fix our problems why don't you start enforcing immigration laws and follow the example of Arizona and Alabama? Make it harder for illegals to tax and burden our social services? Don't you believe in the rule of law?

  16. Regarding anchor babies, "What about the kids born here?" I simply believe we should do what the law mandates. Until someone is 18, they are the ward of their parents, have to go wherever their parents go. PERIOD! When they turn 18, they can come back. I'd send all illegals packing, kids and parents. That would solve all of our financial problems and we'd even be able to lower taxes. Prisons would be half empty. The graffiti problem would be reduced by 80% or more. Crime, you guessed it, down by around 50% so we wouldn't need as many cops. We could then bulldoze the east side of town and replace it with parks, nice houses with big back yards, swimming pools, etc.

  17. Mickey: not sure how you got to this point in this thread but here goes: The 14th amendment AUTHORIZES the federal government to REGULATE immigration: We CAN have a regulation that does not confer citizenship when Mommy was here illegally and gave birth--the kids are citizens of mommy's country. Also note, Arizona (before SCOTUS) notes that CRIME IS DOWN massively with the illegals moving out after their state legislation to START controlling illegals.

  18. psst. We wouldn't have to pay for K-12, ER's, incarceration...... and we wouldn't need tax increases.