The Shumlin Administration is proposing changing a state law requiring online merchants to levy a sales tax.
Earlier this month Amazon barred Vermonters from participating in a program which pays small commissions to those who frequently refer other buyers to the company’s website.
Vermont is one of a number of states with legislation requiring online merchants to charge a sales tax. Its law only goes into effect if 15 states adopt similar legislation, which has yet to happen.
Apparently that threshold was low enough for Amazon to take action.
Now Tax Commissioner Mary Peterson says the administration will propose that lawmakers raise the threshold to 25 states. Peterson believes Amazon will reinstate the program if that’s done.
“We’ve had some discussions with them. We’re confident that if the trigger was appreciably higher they would be reinstating,” says Peterson.
Peterson says Vermont would rather see federal legislation that requires retailers to levy sales tax, which is a position also supported by Amazon.
