Why Amazon Shoppers Might Pay More Sales Tax This Year

The video discusses the complexities of sales tax collection for Amazon and its third-party merchants. While Amazon collects sales tax on first-party sales in all applicable states, the responsibility for third-party sales remains unclear. Some states are pursuing Amazon directly, while others target merchants. An amnesty agreement in 24 states and DC aims to clarify responsibilities, but the issue remains unresolved. The lack of a federal solution complicates matters, as states have different rules and motivations to collect taxes, while the federal government is less incentivized to act.

How do different states approach the issue of sales tax collection from Amazon and its merchants?

What is Amazon's stance on a federal solution for sales tax collection, and why do they favor it?