LAS VEGAS -- Your online shopping experience could change. Nevada lawmakers are considering a bill that would make big name online companies like Amazon charge you sales tax.
When you buy from online only companies like Amazon.com, you're not charged sales tax. What you may not realize is that you are still responsible for paying that sales tax. You're supposed to fill out the proper paperwork and send your money to the Nevada Department of Taxation.
Because many don't realize they have to do this, experts say the state is losing $16 million a year.
"Our children are losing out on money that isn't being collected. Our local governments, who are hurting, are losing out on taxes that aren't being collected and the general fund is losing out. This is not a new tax, it just changes who is supposed to collect it so education can start utilizing that money," said Bryan Wachter, president of Retail Association of Nevada.
The association has launched a campaign with television and radio advertising in hopes of shifting the burden of collecting the sales tax to the retailer.
Under the proposal, online companies would have to collect the sales tax and send it to the state of Nevada each month just like every other business. The online only companies have been able to get around collecting sales tax because they don't have a physical store in Nevada.
The Retail Association of Nevada says not only can the state start collecting the money they are owed, but it evens the playing field. Small businesses like Patty's Closet compete with online companies and owner Parry Barba says it isn't fair if they don't collect taxes.
"Surprisingly there are a lot of people that get up to the register and are going to pay for something and then they double think it because they forget that they have to add that sales tax," said Barba.
Barba says keeping prices low is a high priority especially in a down economy. She's hoping lawmakers agree to the change. 8 News NOW did contact Amazon.com for a comment and was sent this statement from their vice president of Global Public Policy.
"The new tax legislation sought by big box retailers would make us reconsider our pending plans for jobs and investment in Nevada, including in Las Vegas."
Most big retail chains like Target or Best Buy who sell online do charge sales tax and that's because they have stores located in Nevada.
