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Why does Amazon.com have no tax on CA orders?


I live in california where most purchase involves tax, except for food. Much to my surprise, Amazon.com does not. But why? Also, are there any other shops having no tax as well?

Amazon.com probably does not have any physical locations in CA. Also, there may not be any other form of nexus that would require Amazon to collect CA sales tax.

Also, you are actually required to pay use tax on your purchases that sales tax was not charged. The use tax rate is usually the same as the sales tax rate.

It all depends on whether or not they have a nexus in California. If there is a business location anywhere in the state, they have to charge sales tax.

Keep in mind, that the official law is a sales and use tax. Check your tax return, there may be a line for you to "voluntarily" list untaxed purchases and pay the tax that way.

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