Shopping center owners will soon have one perceived roadblock behind them. Amazon.com is going to start collecting sales tax in some major states, putting the most successful Internet retailer on the same playing field as any brick and mortar store.

By law, Amazon was only required to collect sales tax from the five states where it has a physical presence, such as its headquarters in Washington state and areas where it has distribution centers. But revenue-hungry states have been putting pressure on the company for years, and with its enormous growth, it's harder for Amazon to avoid putting warehouses in certain locales just to avoid charging customers sales tax.

It will start collecting sales tax on purchases by Texas customers this week, followed by California and Pennsylvania in two months. In a year and a half it will collect sales tax in 13 states.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.