BIRMINGHAM, Ala. (WIAT) — Beginning November 1, Amazon shoppers in Alabama will have to pay more for their purchases. The online shopping site will start collecting an 8% state sales tax.
Just in time for the holiday shopping season, the online retailer will start collecting an 8% sales tax. This means, if you purchase a $20 dollar item on Amazon, you’ll pay about an extra $1.60 in taxes.
Amazon is the latest company to sign on to a deal making it easier for states to collect state taxes already owed.
“I’ll probably just do more price checking and if it’s cheaper I’d still get it online because it’s sometimes more convenient,” said Gunner Miller, an Amazon shopper.
“I definitely think seeing the prices rise a bit would be a bit discouraging, but overall when I go to Amazon I look for the lowest price so I don’t think it would necessarily be noticeable,” said Pierce Newman, an Amazon shopper.
While some shoppers may feel the impact of the tax, some think this will bring a big boost to the state.
“The fact that the state would be gaining revenue and they could put that towards the education system and towards roads and things around the state would be useful overall,” said Newman.
According to Alabama Revenue Deputy Commissioner Joe Garrett, the state expects to collect $30-$50 million in the second full year of the program.
50% of the revenue from the tax will go to the General Fund, with a portion going to the Special Education Trust Fund.
25% will go to counties, and 25% will go to cities, which will be divided up according to population.
The Amazon Tax goes into effect November 1.
How do you feel about the tax? Will it change the way you holiday shop? Chime in here.