PITTSBURGH (KDKA) — Starting Sept. 1 at midnight, the tax-free party for online shoppers in Pennsylvania is over.
Online retailers with a physical building, such as a warehouse, located in Pennsylvania should begin collecting sales tax.
Amazon.com, the nation’s largest online retailer, says it will comply.
“We collect sales tax or its equivalent in more than half of the areas where we do business,” says Scott Stanzel from Amazon. “We are pleased to say we are thriving in those geographies because Amazon has the lowest prices, best selection and fast delivery.”
Doug Satterfield from Rollier’s Hardware in Mt. Lebanon says it’s about time.
“I think it’s fair that online purchases should be charging some sales tax,” says Satterfield. “It gives more of an even playing field.”
Online shopper Darla Hills from Braddock isn’t pleased.
“So they’re going be charging me tax now?” Hills says. “Oh, that’s insane! So I might as well go into the store.”
A study done by an Economics Professor at Carnegie Mellon University found that without this change, Pennsylvania would miss out on as much as $410 million this year. The study was funded by a group in favor of this change.