Mississippi man finds Amazon sales tax loophole - MSNewsNow.com - Jackson, MS

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Mississippi man finds Amazon sales tax loophole

Source: WLBT Source: WLBT
Source: WLBT Source: WLBT
JACKSON, MS (Mississippi News Now) -

Amazon recently agreed to collect Mississippi sales tax for online purchases, a welcome boost for the state's bottom line, but, it turns out not everything on the site is actually taxed.

Keith Bennett says he went to Amazon to purchase a laptop, a tablet bag, and a mouse, but noticed he wasn't charged tax during a recent transaction

"When I went to the checkout, it only charged me a $1.78, and I thought 'Well wait, what is this deal here?'" said Bennett. "And they only charged me tax on the bag and the mouse."

That's because those items are sold by Amazon itself, but when you shop on the Amazon, most of the sellers are not Amazon. 

The company selling the computer he bought is not so discreetly named "Buy Tax Free."

"As I'm finally understanding it, they're like a listing on Craigslist," said Bennett. "Other people can come in and sell stuff, but still, I feel that they should be collecting the sales tax even though they're selling the products through Amazon."

The Department of Revenue sent a statement explaining:

 Any sales made by a third-party independent seller, even though made through the Amazon marketplace, are not covered under the agreement.

The Department expects the tax on Amazon products to bring $15-30 million dollars of revenue into the state.

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