Amazon.com Inc. will start collecting sales tax on all packages shipped to Louisiana, beginning Jan. 1, 2017, NOLA.com reported Dec. 20.
Kimberly Robinson, secretary at the Louisiana Department of Revenue, reportedly confirmed that the e-commerce giant will charge state and local sales taxes for shipments to Louisiana, a process online retailers in the state already follow. The company will charge up to 10% more after order completion, as the purchases will reportedly include 5% state sales tax and up to 5% more city sales tax.
The decision comes after Louisiana lawmakers earlier in 2016 passed a bill that required online sellers to either collect sales tax or remind their customers about their purchases and how much they owe every year in taxes based off of those purchases. Louisiana will become part of the list of 29 states and the District of Columbia where Amazon applies sales tax on online purchases, according to the report.