WalMart is a high-profile member of the Main Street Fairness Coalition, a group of “bricks and mortar” retailers that supports state and federal legislation requiring Amazon.com and other online sellers to collect state sales taxes. But, according to the Los Angeles Times, WalMart.com, the retailer’s online affiliate, based in Brisbane, California, doesn’t always comply with California’s new “Amazon tax” law.
The Times reports that Walmart.com sells “hundreds of products” from Boston-based CSN stores to California residents through its website without charging the state’s 7.25% sales tax. CSN, a privately held online retailer with annual sales of more than $380 million, collects sales tax only on goods shipped to Massachusetts and Utah, the two states where it has a “physical presence.” WalMart says it isn’t responsible for making third parties that sell through its site collect the tax. California tax authorities and UConn Law School professor Richard D. Pomp, quoted in the article, take a different view.
Meanwhile, the Lawrence, Kansas Journal-World reports that the Kansas Department of Revenue is investigating Kansas State University for failing to charge state sales tax on items sold to Kansas residents through the K-State Official Online Store. The university argues that, because the online store is run by a Florida company with no physical presence in Kansas, it doesn’t have to charge the tax. The state revenue department has ruled otherwise, but as of August 29th, the online store has not changed its policy. Kansas’ sales tax is 6.3%, plus applicable local taxes.
