In this 2012 file photo, Tennessee Gov. Bill Haslam stands near the processing line at Amazon’s Chattanooga fulfillment center at Enterprise South Industrial Park.NASHVILLE – A law that could boost the state’s revenue is among those taking effect on Jan. 1, as are statutes that govern concussions in school-age athletes and workforce development.
Starting Wednesday, Amazon.com will begin collecting sales tax in Tennessee. Under a deal struck with the administration of former Gov. Phil Bredesen, Amazon was absolved from collecting the state sales tax. Customers were responsible for paying them on their own to the state Department of Revenue.
However, the online retailing giant’s brick-and-mortar competitors argued that arrangement wasn’t fair.
Current Gov. Bill Haslam eventually reached an agreement with Amazon that required it to begin collecting sales tax in Tennessee in 2014. The company also agreed to build two distribution centers in Hamilton and Bradley counties, creating about 3,500 jobs.
In addition to employment, state finance officials hope the collection requirement will shore up state revenues that have been sluggish partly because of sales tax collections that have fallen short of projections the past few months.