Amazon.com Will Collect State Sales Tax in 2013
The Internet retailer said the collection would begin in time for next year's holiday shopping season.
Photos
Checking out at Amazon.com will be a little pricier starting next November.
Gov. Deval Patrick's office announced the deal Tuesday, stating the company would be adding jobs to Massachusetts in the next few years, WBZ reported.
Amazon.com and Patrick said they would work together to support a federal bill allowing individual states to collect sales tax in states where they have no physical location.
"I value the contributions large and small employers alike make to Massachusetts' economic vitality, and this agreement captures that," Patrick said in a statement. "We are thankful Amazon was willing to come to the table and we will continue our conversations with them about creating jobs here. This agreement is a win for all sides, and I am pleased it promises to generate millions in long-term revenue for the commonwealth."
Massachusetts Secretary of Administration and Finance Jay Gonzalez said while he's pleased with the progress, that to receive the full benefit of the taxes paid, the feds have to act.
"I appreciate Amazon’s willingness to work with us to reach an agreement that will benefit both the commonwealth’s businesses and Massachusetts taxpayers," said Gonzalez. "However, Massachusetts and other states will receive the majority of the revenue owed only when Congress passes federal legislation, and we encourage Congress to act."
Will this change how you shop online? Tell us in the comments.
Josh Chace
4:16 pm on Wednesday, December 12, 2012
So he traded 100% of Massachusetts residents paying taxes on their items for a small amount of undisclosed jobs in a warehouse sorting products for probably scratch over minimum wage? Thanks Duval. Good trade. That's definitely "mutually beneficial" to us. Also, quite encouraging that you'll be lobbying to encourage Congress to act on passing federal legislation to tax further internet purchases. You're definitely looking out for the middle class!
Percy
4:47 am on Thursday, December 13, 2012
The window for sales-tax free Internet sales was never intended to be perpetual, but to help nurse the infancy and childhood of Internet commerce. As a legal matter, of course, MA residents (as residents of all sales tax states do) owe a use tax on their sales-tax free purchases; the dfference is who has the burden of compliance. With a use tax, the burden is on the purchaser; with a sales tax, the burden is on the retailer.