Christian Retailing

NEWSLETTERS Current Issue Online sales tax collection levels retail playing field in more states
Online sales tax collection levels retail playing field in more states PDF Print E-mail
Written by Jeremy Burns   
Thursday, 15 May 2014 11:33 AM EDT

Amazon-webThe recent implementation of what some researchers call the “Amazon tax” has led to a more level playing field for brick-and-mortar retailers, according to a study by three Ohio State University economists.

The study focused on the purchasing habits of nearly 3 million households in five states that began a permanent collection of taxes on Amazon purchases since 2012—California, New Jersey, Pennsylvania, Texas and Virginia—and found that Amazon purchases declined by 9.5% after the new state laws’ implementation. Amazon’s loss was brick-and-mortar retailers’ gain, however, as the decrease in Amazon purchases led to a 2% increase in purchases at physical stores. Further, the study found that only Amazon purchases were affected by the new tax laws, as sales from online operations of competing retailers—including those with brick-and-mortar counterparts—grew 19.8%.

Sales tax equality has been a contentious issue with retailers since Amazon began cast its shadow on the retail landscape. In states where Amazon does not have a physical presence, the online retail giant was not required to collect sales tax, putting brick-and-mortar retailers in that state at a pricing disadvantage.

The Institute for Local Self-Reliance and other retail groups and industry representatives have pointed to Amazon’s exemption from sales tax collection as one of the keys behind its marketplace dominance.

 

In this current issue:

‘God and Donald Trump’ explores spiritual aspects of his miracle victory

News image

Donald Trump is six months into the U.S. presidency, and...

READ MORE

Marketing executive Lucy Diaz Kurz rejoins Charisma House

News image

Lucy Diaz Kurz has rejoined the Charisma House book group...

READ MORE

CBA, retail partners launch 'Get It Local Today'

News image

In a cooperative industry project, CBA will provide Christian stores...

READ MORE

Exhibitors mostly positive about quieter Unite 2017

News image

CBA's Unite 2017 in Cincinnati had an intentionally smaller footprint...

READ MORE

Christian illusionists entertain, inspire at CBA's 'Envision the Legacy' banquet

News image

CBA’s Unite 2017 drew show attendees to a Duke Energy...

READ MORE

Filmmakers showcase new movies, related products at Unite

News image

CBA's Unite show hosted some of 2017's most exciting Christian...

READ MORE

Logos Bookstores announces 2017 award winners

News image

The Association of Logos Bookstores announced this year’s Books, Author...

READ MORE

Unite show opener encourages Christian retailers

News image

CBA kicked off the Unite 2017 convention in Cincinnati with...

READ MORE

Workshops cover why and what of Christian retail

News image

CLC executive Dave Almack believes strongly in the Christian retail...

READ MORE

CBA shares State of the Industry Report at Unite 2017

News image

Eric Grimm, CBA’s director of communications, gave retailers plenty of...

READ MORE

AWSA announces Golden Scroll winners

News image

Advanced Writers and Speakers Association (AWSA) announced the winners of...

READ MORE

Kregel, Gilead partner in new fiction publishing initiative

News image

Jerry Kregel, executive vice president of publishing, Kregel Publications, and...

READ MORE
100%
-
+
0
Show options

a