Amazon charges tax directly for states where they have a physical presence, currently, Kansas, Kentucky, North Dakota and Washington. Tax rate is determined by shipping destination.

New York state regulations require that Amazon and other internet and catalog retailers now collect sales tax for shipments to New York.

Other states, like California, have implemented tax laws for non-taxed catalog and internet shipments to California consumers as a use tax that you must pay when filing your annual tax return. If you use TurboTax, it asks you about such purchases. The rules also encompass items purchased when traveling abroad and bringing them back to California.

Which items are taxable is already determined at the state level. Non-profit and reseller state tax regulations still apply.

Check your state regulations to understand what is required of you. I have a friend who ordered her cigarettes by the carton from an internet company for about a year. She received a bill in the mail about a year later when the state of California audited the seller.

Amazon's Sales Tax Guidelines:
http://www.amazon.com/gp/help/customer/display.html?nodeId=468512

State of California Sales Tax/Use Tax for out of state purchases:
http://www.boe.ca.gov/pdf/pub79b.pdf
http://www.ftb.ca.gov/current/usetax.shtml

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