Enjoy it While You Can

Enjoy your last Christmas shopping season for sales-tax free Amazon purchases.

The online retailer starts collecting sales tax on items purchased by Tennessee residents, per an agreement with the state, on Jan. 1. Amazon located distribution centers in Tennessee but got an exemption from collecting sales tax. After an outcry, an agreement was reached to allow sales tax–free purchases for two years; that period has expired.

The Department of Revenue estimates up to $400 million in lost sales-tax revenue to online sales. How much of that total is attributable to Amazon is subject to dispute.

Congress has so far not passed a nationwide requirement that online retailers collect sales tax owed to the state. But states can force collection on online companies that have a physical presence in the state.