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.

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.

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," said Patrick, 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.

Good grief! December 12, 2012 at 04:59 PM
How about lowering taxes to encourage more sales and stimulate trade, and learning to get by on what you have instead of spending your way into debt and bailing the state out by taxation? No, that will never happen. It is just too easy to increase taxes on the population when the state needs more money. If the number of voters getting government benefits exceeds the number of voters paying for them we will spiral into debt, and it will not improve.
Jay Moore December 12, 2012 at 09:14 PM
Thank you Jim for pointing out the facts. It is refreshing when people actually know what the law states and which lobbying groups pushed for a change. It is so easy to blame President Obama or the Governor. As the article notes, no change was made on the federal level and the proposed bill to make EBay and other online sites collect taxes has been kicking around since the Clinton era. If Brian wants to fuss, he should focus on the tax we all really hate: excise tax!
Martin Kessel December 12, 2012 at 11:05 PM
Lowering taxes for everyone may be a good idea, but there's no conceivable reason we should be subsidizing a large out-of-state corporation at the expense of local businesses.
TBH December 13, 2012 at 12:23 AM
Subsidizing? Even without the tax break, they consistently offer better deals with the convenience of shopping at home with free delivery. I just don't see this as a great boon to local businesses. And what "local businesses" are we really talking about? Target? Walmart? Best Buy? I'm not worried about any of them. Do you really think that more people will shop at small businesses like Tatnuck? People are not going to completely change their shopping habits. They will pay the same 6.25% whether via a local cashier or the click of a mouse.
OFD02125 February 07, 2013 at 08:21 PM
Everyday is a tax-free holiday in NH !!


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