Iowans who shop online using Amazon will have to pay more, starting Sunday. The popular website will begin charging the six-percent Iowa sales tax as of January 1st. Victoria Daniels, spokeswoman for the Iowa Department of Revenue, says Iowans who buy items for themselves will be charged that tax, but not necessarily if they’re buying a gift for someone who lives out-of-state.
Daniels says the change was not an effort by the state to make money. She says officials at Amazon approached the state first. It’s unclear how much money Iowa may rake in from the tax via Amazon purchases.
Online retailers that don’t have “brick and mortar” stores in the state typically haven’t forced customers to pay the sales tax.
Amazon already charges sales tax in about 30 other states. Amazon revenues in 2015 reportedly exceeded 100-billion dollars.