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The Boston Globe

Business

Mass. prods Amazon to collect sales taxes

The Patrick administration is pressing Amazon.com Inc. to begin collecting sales taxes from Massachusetts customers as early as next year, arguing it is no longer exempt under federal law from charging the tax.

Under federal law, online retailers do not have to collect sales taxes from Massachusetts buyers unless the company has a physical presence, such as an office or store, in the state. But officials in the administration of Governor Deval Patrick contend that Amazon’s purchase of a North Reading technology firm, Kiva Systems, earlier this year, as well as its ongoing efforts to recruit engineers for a new office in Cambridge, establish the kind of physical presence necessary to collect the 6.25 percent sales tax.

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