Amazon Asks South Carolina Justices to Nix $12.5 Million Tax

The South Carolina Supreme Court should hold that Amazon isn’t liable for about $12.5 million in sales tax because a statute doesn’t apply to previous years, the company said.

A 2019 amendment expanded the scope of sales tax liability by including “marketplace facilitators,” entities that facilitate sales for third-party sellers, a change which meant Amazon Services LLC had to collect tax from sales on its website moving forward, Amazon said. The South Carolina Department of Revenue wrongly asserts that Amazon was still liable for sales tax before the amendment, the Tuesday brief said.

The amendment detailed what constitutes a marketplace ...