Amazon to start collecting online sales tax in Tennessee - WAFF-TV: News, Weather and Sports for Huntsville, AL

Amazon to start collecting online sales tax in Tennessee next month


Millions of people logged in to their computers to shop on what's become known as Cyber Monday. And if you snagged a gift from, there's a good chance it's being shipped from a giant warehouse right here in Tennessee.

But this holiday season will be the last one you'll be able to shop tax-free.

It was a Cyber Monday world record breaker in 2012.

"Last year we had over 26 million orders on Cyber Monday," said Amazon spokesman Erik Fairleight. "That's an astounding 306 items per second."

And Tennessee will soon get its share of online sales tax revenue on many of those items starting in January 2014.

"Analysts have noted with or without sales taxes, Amazon still has the lowest prices, so we don't think it will really effect customers that much," Fairleight said.

Amazon officials said with online shopping so popular and convenient, they don't expect to see a drop in Tennessee customers just because they will start paying sales taxes.

"We feel comfortable our customers will still come back to for great deals."

The Sticker Lady owner Brittney Babbitt uses to sell her products.

The a small home-based business grew by 70 percent once she started selling on Amazon, and sales increased by another 80 percent on Cyber Monday.

Babbitt recently relocated to Rutherford County from California and had no idea about the upcoming online sales tax collection.

"Actually I didn't know they were going to be doing that," Babbitt said. "It probably will affect us, as of now, we don't charge it."

Gov. Bill Haslam signed the online sales tax bill into law back in 2012 but gave Amazon two years before they are required to start collecting.

Haslam has said in the past the state is expected to generate millions of dollars once Amazon starts collecting the taxes.

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