What will Amazon do in Oklahoma? Will it hurt or help sellers?
In trying to close the budget gap and give teachers a raise, Oklahoma has created a huge burden for online sellers. Some sellers may be exempt depending on what Amazon does. Will Amazon begin collecting tax in OK like they did in PA & WA or will they turn over seller information like they did in RI. In a recent article I did for AccountingWeb I address the new OK burdensome requirements, that become effective July 1, 2018, and the atrocious potential penalties. The name of the article is, What Oklahoma's Sales Tax Nexus End Run Means
Here are some brief excerpts:
When states need to raise money, one of their favorite ways to do so is to tax out-of-state sellers; this is exactly the position that Oklahoma Governor Fallin and the state legislature found themselves in.
The hype surrounding the tax shows Amazon, eBay, Etsy and other marketplace facilitators are the intended targets. Since they would take the brunt of having to collect the tax.
Perhaps the biggest losers with this kind of legislation are the thousands of small sellers from around the country who fit the definition of a remote seller...
if you are making $10,000 in sales per year from your own website, you have the same requirements as Amazon.
For each notice that is missed, there is a potential minimum penalty of $20,000 or 20 percent of your last 12 months of sales whichever is less.