Amazon agrees to collect Nevada tax for online buys

Joyce Lupiani

Amazon agrees to collect Nevada tax for online buys

CREATED Apr. 24, 2012

CARSON CITY, Nev. (AP) -- Online retail giant Amazon will voluntarily collect state sales tax on Nevadans' purchases beginning in 2014.

Gov. Brian Sandoval announced Monday that the state has reached an agreement with the company that takes effect Jan. 1, 2014, unless federal legislation for online sales tax collection is enacted first.

Online retailers based primarily out-of-state aren't required to collect and turn over state tax, while brick-and-mortar stores are. Sandoval says the inconsistency will only be fixed if Congress enacts laws that allow states to collect interstate sales tax.

State tax is technically due on purchases made online, but it's the buyer's responsibility to report it to the state. That virtually never happens, and officials have no way to enforce self-reporting compliance.

Amazon has operations in the Reno and Las Vegas areas.