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Why Amazon’s South Carolina Back Taxes Could Reach $277M
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Subscribe19 MAR 2026 / ACCOUNTING & TAXES
After a decade-long legal battle, the South Carolina Supreme Court has ruled that Amazon is liable for the sales taxes for third-party products sold on its platform within the state, labeling it as the 'seller'. It implies that other states can present similar claims against Amazon, potentially posing up to $277 million worth tax liabilities for the firm. The ruling builds a precedent which affects the interpretations of sales tax liability and extends beyond tax implications to product liabilities, consumer protection, and platform accountability, prompting conversations surrounding business models.
Amazon pulled $716.9 billion in revenue in 2025. So yes, it can easily cut a check for South Carolina. But that’s not why this case matters. The real question sitting underneath this ruling is far more uncomfortable: can states reopen the past and say, “y...
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