They will start collecting sales tax in 2013 from us Tennesseans, that is because they have built some distribution warehouses here locally. It kind of stinks and I see myself not buying as much from Amazon because of it but the impact they have had around here in Chattanooga, TN has been tremendous and I am very grateful for that. Besides they are not charging the sales tax, just collecting it, they are owed to the state whether they collect it or not.
Same here. I think the first state to start this (with Amazon) was NY. Last I heard there was an injunction as Amazon takes them to court over it, so NY still isnt collecting the tax.
My state (CT) just tried to pull this starting last year. Amazon doesnt have any warehouses here, but CTs stance was that some small online shops sell thru Amazon.
Amazons solution? Drop all the CT based small online shops that sell thru them. Result? Even more small businesses in CT going under. On top of that, our fearless leader (Gov Malloy) estimated a whopping 7 million in tax income by doing this (they were going to directly tax other places like Overstock [who uses them anymore, btw?]). So they "gained" 7 million, and in the end really didnt, by alienating a whole bunch of small businesses. (BTW, Malloys slogan for the state is "CT is open for business"......)
As far as "use tax", yes, we are supposed to report things we buy that arent charged sales tax. Im not sure its a per-state thing or if every state has the law, but I know CT does.