Amazon Will Collect Tax on Wyoming Sales Beginning in March
Under a voluntary collection agreement, Amazon will begin collecting tax on sales to Wyoming consumers and businesses beginning March 1, 2017.
The effect on state revenues is difficult to project, according to a news release from Governor Matt Mead. Estimates may be made once Amazon has remitted for year.
But a study conducted by the University of Tennessee estimates total losses of revenue from e-commerce in Wyoming was $28.6 million for 2012.
"Wyoming businesses are at a disadvantage when internet businesses fail to collect tax," said Mead in the release. "This is an important step in the right direction."
Amazon has recently moved to collect taxes in Utah, Iowa, Nebraska and South Dakota. In total, the company collects sales tax in 34 states and the District of Columbia.
The governor's release notes, however, that the voluntary agreement with Amazon does not provide resolution of the state's effort to require that remote vendors collect sales tax through ongoing membership in the Streamlined Sales Tax Governing Board.
But the agreement does indicate that sales taxes can be collected by online vendors from their customers.
Mead, in the statement, encourages state lawmakers to continue work on the remote seller's bill, which would apply to all internet sales.
The deal comes during an historic budget crisis for the state. While the additional tax collections won't come close to solving Wyoming's issues, they will help.