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:

Word Weavers forms alliance with BelieversTrust

News image

Word Weavers International, an 18-year-old organization for writers founded and...

READ MORE

Eerdmans longtime editor in chief to retire

News image

Jon Pott, vice president and editor in chief of Wm....

READ MORE

Zondervan hosts dinner for NIV’s 50th

News image

Zondervan, Biblica and the Committee on Bible Translation welcomed more...

READ MORE

Munce partners with SuzyQ to host writers conference

News image

The Munce Group and SuzyQ have announced a new writers...

READ MORE

Fire destroys Los Angeles Christian store

News image

A Christian retail store was gutted by fire Friday evening,...

READ MORE

Family Christian partners to assist widows for Thanksgiving

News image

Family Christian Stores has announced its partnership with author Miriam...

READ MORE

LifeWay to stay closed Thanksgiving

News image

While the "war on Christmas" generates more headlines, Thanksgiving has...

READ MORE

Britt Beemer: Retailers ‘control their own destinies’

News image

The mood of the American consumer is surprisingly gloomy, according...

READ MORE

GMA Canada presents Covenant Awards

News image

The Gospel Music Association (GMA) Canada honored singer-songwriter Dan Bremnes...

READ MORE

Holley Gerth’s ‘Amazing’ becomes best-seller

News image

Holley Gerth’s You’re Already Amazing (Revell/Baker Publishing Group) has landed...

READ MORE

Hachette to set e-book prices under new Amazon deal

News image

Hachette Book Group and Amazon announced Thursday that the companies...

READ MORE

Nazarene Publishing House restructures

News image

Nazarene Publishing House (NPH) will not close for business, but...

READ MORE
100%
-
+
0
Show options

a