yeah but you can go to bestbuy.com and buy it too... if they have the best price.

personally I think this sucks.

as it stands right now, if I want to buy at walmart for example... I can go to walmart.com and make my purchases have them delivered to the store for free, go pick them up... no sales tax, no delivery charge... and bring them home   

I'm still buying at walmart... do they really want to mess that up?  Online sales will drop drastically I think and new loopholes will form.

Sales tax laws vary significantly from state to state.  If I order from walmart.com and pick it up in the store, I pay sales tax.  Tennessee law requires that if the internet merchant has brick and mortar stores in the state.  Lugh's example indicates Virginia's laws are different.

When Amazon opened fulfillment centers in Tennessee several years ago, they reached an agreement with the state to begin collecting sales taxes on shipments to Tennessee residents in 2014.  In the interim they have been providing customers in the state an annual report of purchases, so that taxpayers can remit the taxes due directly to the state.

I'm geared up for the change in the law.  It will level the playing field.  I expect Amazon will still beat local merchants on price more often than not.  I will continue to make purchasing decisions on a net/net basis comparing the total price including taxes and shipping charges.  Just this week I purchased a tablet for my wife from an Ebay merchant, not because it was sales tax exempt or shipped free, but because the price was $50 less than Amazon or Best Buy.

The change will present one headache for online merchants due to varying state laws.  Not all classes of merchandise are taxable in every state.  The exemptions are all over the lot.  A GA Premium Membership would not be taxable to a Tennessee resident, but would be to members in some other states.

So, the level playing field will be a little bit rocky.

On one hand, it sucks. On the other hand, it'll be really, really good for all the new tax-free shopping centers they're putting up in Delaware.

So wait though...sales taxes can apply to things like memberships and the like? That's crazy. I didn't even know that was possible- so you're saying like if I joined a gym in a state that had sales tax, I might have to pay a sales tax for that membership? And if I did, would it just be for the initial purpose or every month?

On one hand, it sucks. On the other hand, it'll be really, really good for all the new tax-free shopping centers they're putting up in Delaware.

 

So wait though...sales taxes can apply to things like memberships and the like? That's crazy. I didn't even know that was possible- so you're saying like if I joined a gym in a state that had sales tax, I might have to pay a sales tax for that membership? And if I did, would it just be for the initial purpose or every month?

Yep, Methodwriter.  Those are all possibilities...depends on the state.  See the "summary table" at http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States  for a taste of the complexities.

Each state's sales tax laws can be complex...not just different from other states.  For example the Tennessee plain English guide for merchants and taxpayers runs 53 pages.  Check out page 18-19 for details on which foods qualify for the reduced sales tax rate of 5.25% and which foods are taxed at 7.00%.  A hint:  Candy is not food, but baked goods (defined as anything which contains flour) are food.  So, a Hershey bar is not food, but a Twix bar is.

A further complication...each of the 95 counties in Tennessee sets its own sales tax rate.