Pittsburgh Post-Gazette

Pa. tax at Amazon can be tricky

- For an explanatio­n of Amazon.com’s tax collection policies, visit www.amazon.com/ gp/help/customer/display. html?nodeid=468512&. A list of taxable and nontaxable items in Pennsylvan­ia is available at www.revenue.state.pa.us. Patricia Sabatini: psabatini@p

set that deadline for retailers to comply with a decades-old law — long ignored by many e-commerce businesses — that requires companies with a physical presence in the state to collect sales tax. Seattle-based Amazon has a half-dozen distributi­on centers in Pennsylvan­ia.

The revenue department signaled it was stepping up enforcemen­t of online retailers with a regulatory bulletin issued in December warning that businesses that ignored the deadline could be audited and required to pay at least three years’ worth of back taxes.

“We wanted businesses to realize that as of Sept. 1, if they did not comply,” they would face “escalating enforcemen­t actions,” spokeswoma­n Maia Warren said.

The state estimates that compliance by Amazon and others will bring in an additional $43 million during the current fiscal year.

Ms. Warren wouldn’t identify any businesses besides Amazon that pledged to start collecting sales tax since the bulletin went out, citing taxpayer confidenti­ality.

“We’re encouraged by significan­t compliance,” she said.

The state was looking for ways to crack down on scofflaws as a matter of fairness, Ms. Warren said. “The Department of Revenue wanted to enforce the existing tax laws fairly with regards to all businesses,” she said. “We’re working to ensure that e-commerce companies don’t continue to have an unfair advantage over brick-and-mortar stores.”

In Pennsylvan­ia, most food, clothing and medicines are exempt from sales tax.

Many other types of goods that are increasing­ly being purchased online are taxable, including major categories such as cosmetics, jewelry, purses and wallets, soaps and shampoo, paper goods, pet food, hardware and tools, rugs, linens, cookware, dinnerware, furniture and appliances.

Consumers who believe sales tax has been misapplied by a retailer and are unsuccessf­ul at getting a refund should contact the revenue department’s board of appeals for help at 717-783-3664, or www.boardofapp­eals.state. pa.us. Save any receipts showing the amount of sales tax in question.

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