Starting April 1, Amazon will start collecting sales tax on all purchases made by customers from Pennsylvania.
It’s a response to a law passed by the Commonwealth’s general assembly last year.
The law aimed to improve the collection of sales tax. Amazon was already collecting taxes on its own transactions, and remitting them to the state, but not on those made from third party sellers using their marketplace.
Pennsylvania Department of Revenue spokesman Jeffrey Johnson said between Amazon and other companies, the state will recoup millions.
“The department has worked out some estimates that it will generate about $8 million in the current fiscal year that we’re more than half way through, and the next fiscal year, we are estimating about $50 million in additional sales tax revenue,” he said.
He said it’s also an effort to put brick and mortar stores, which already collect state sales tax, on an even playing field with online marketplaces.