Tax on Amazon Purchases From Texas Begins Sunday

At checkout Texans will see state and local sales tax added to the purchase price

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    NEWSLETTERS

    AP
    Amazon.com worker David Brendoff, left, moves boxes with merchandise for shipment.

    Texans shopping on Amazon.com will start paying state and local sales taxes on Sunday.

    Under a deal with Texas Comptroller Susan Combs, the online retail giant is to begin collecting sales taxes July 1 on purchases from Texas.

    Amazon has also promised 2,500 new jobs for the state and $200 million in capital investment over four years.

    Before the deal struck in April, Texas store owners had complained that Internet retailers have an unfair price advantage because they are not required to collect state sales tax.

    But that's about to change. 

    An Amazon spokesman wrote in an email to the Austin American Statesman that "Amazon customers in Texas will see the appropriate sales taxes (automatically) applied to their order when they proceed to check out."