Amazon To Start Collecting Sales Tax In Oklahoma From Online Purchases

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Add Oklahoma to the list of states collecting sales tax from online purchases made from Amazon.com. Oklahoma Governor Mary Fallin made the announcement Thursday.

According to ABC News, online retail giant Amazon will start the collection of state and local sales taxes by March 1. Remittance by Amazon will start April. Fallin revealed that local governments who are dependent on sales tax will start receiving the collection by May. The governor considers the agreement as a "big accomplishment" for the state.

In a statement, Fallin said that this will bring equality to businesses in Oklahoma. "This agreement levels the playing field for businesses in our state. Several state and retail groups have argued that stores in the state that must charge sales tax are at a disadvantage in competing against Amazon because it didn't charge state sales tax." Fallin explained.

According to KFOR News, Fallin revealed that state revenue will not have any impact on this year's current $870 million budget hole since the Tax Commission has already made projections of increased collections because of their negotiations with Amazon. Fallin expects an increase in the amount they receive from Amazon.

Oklahoma Rep. Chad Caldwell, who filed the Oklahoma Retail Protection Act last year, was pleased with the announcement.

"I was pleased to learn of Gov. Mary Fallin's announcement today that Amazon has decided to voluntarily collect and remit sales tax to the state of Oklahoma. This will keep millions of dollars in our state that will go toward educating Oklahoma's children, paving our roads, and providing health care for our citizens," Caldwell said.

According to the website of Wikipedia, several states have enacted the Amazon Tax, which requires Amazon to collect and use sales tax. Currently, there are 38 states where the online retail giant is collecting sales tax. Oklahoma and Wyoming will be added to that list starting Mar. 1.

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