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Court: Amazon Owes South Carolina Millions In Sales Taxes

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PHILLIP PESSAR
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CC BY 2.0/FLICKR

COLUMBIA, S.C. — A court ruling in South Carolina says online retailer Amazon owes the state likely millions of dollars in sales taxes from other vendors who use the company's website.

The South Carolina Administrative Law Court ruled Tuesday that Amazon has the responsibility to collect taxes due from transactions made through its website.

The State newspaper reported Amazon had argued the third-party retailers were responsible for paying the taxes.

The ruling says the state Revenue Department will determine how much Amazon should pay.

South Carolina lawmakers tried to clarify the situation with a law passed earlier this year specifying retailers must collect sales taxes from third-party vendors who sell to shoppers in the state.

Amazon says it disagrees with the ruling, but appreciated the new law in South Carolina.

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