Amazon will collect Iowa tax beginning January 1

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

Beginning January 1, Amazon will be collecting a sales tax for all package deliveries in Iowa.

Iowa is the 31st state in the US to collect a sales tax for orders made on the website. The Iowa Dept. of Revenue estimates the tax will bring in $18-24 million per year, and they say small businesses in the state could benefit from the tax because it eliminates the idea of a tax "discount" when you use Amazon.

Illinois passed a similar law last year.