Posted in Iowa December 14, 2016 by

If You Live In Iowa, You’ll Soon Notice One Big Change When You Order From Amazon

This time of year, many of us rely on online super-stores to deliver things at the drop of the hat. Amazon in particular is known for offering next-day delivery and in some cases, same day delivery. Fortunately, this speedy service is something that will be sticking around. What will change is the price that Iowans will notice at check out. Starting in just a few short weeks, Amazon will begin charging sales tax on every purchase made in Iowa. Here’s more on how this change could effect residents:

Beginning January 1st, Amazon will begin collecting sales tax in Iowa. This will affect thousands in Iowa, who already begrudge the state’s high sales tax of 6%.
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So why this sudden change? Amazon has not yet released a statement for implementing sales tax in Iowa, yet many believe it’s simply the right thing to do.
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While this may certainly put a damper in the online shopping practices of many Iowans, the silver lining is that future Amazon purchases will contribute to sales tax revenue for the state.
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In fact, according to the Iowa Department of Revenue, if all catalogue and online purchases made in Iowa included a sales tax, the state would see nearly 24 million dollars come in.
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Local businesses in particular will be relieved to hear they won’t have to compete — at least not in regards to charging sales tax — with Amazon’s products.
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While Iowa has one of the higher sales tax in the country, it won't be alone in passing the new "Amazon tax" law.
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So far, there have been at least 29 confirmed states that will also begin charging sales taxes for Amazon purchases. Since sales tax laws are implemented at the state level, some places may be exempt from this change.

How do you think this could effect the trend of online shopping for Iowa in particular? Be sure to share your thoughts with us – we’d love to hear from you!