OREM, Utah–A recent change that requires Amazon to charge sales tax may increase one Orem store’s revenue by about $100,000 per year. This change creates an even playing field between online and brick-and-mortar stores.
About a month ago, Amazon started charging seven percent sales tax on all purchases. The change frustrates many online shoppers, but ma-and-pa stores love the protection it provides.
Allen’s Camera is one of those stores. The large amount of tax for the high-end gear they sell drives many customers to buy the items online to save money, but co-owner Rex Allen said that isn’t the case anymore.
“It’s not a matter of them not coming in or having more come in, I’m just having more people buy because they can’t go on Amazon and save $200,” Allen said.
Now that Amazon enforces the tax, Allen has seen a large increase in purchases. but there are still many websites out there that don’t require sales tax. A proposed Utah bill would force online customers to pay that tax on every purchase.
The problem is also being addressed nationwide. Utah congressman Jason Chaffetz met with President Trump on Tuesday, and according to the Deseret News, one of the things they discussed was a nationwide internet sales tax.
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