Amazon.com, the huge online retailer, will begin collecting Massachusetts sales tax on purchases made by Bay State customers, starting next fall, Governor Deval Patrick’s office said Tuesday.
“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.”
Comments
High time! I wish Congress rescinded the law exempting internet merchants from collecting state taxes; and passed a law mandating such tax collection. It is important for taxation to be fairly applied to all.
The Globe continues to accept the preposterous $387 million number without question. Do the math! Divide $387 million by .0625 and you get $6.2 billion (with a "B".) Did Amazon and eBay purchases in MA really add up to $6.2 billion in 2011? Amazon had revenues from all sources worldwide, including their commercial lines, of $48 billion in 2011.
well done sir!
You mis-read the story. That figure is for all Internet sales, not just Amazon, and was provided by the Massachusetts Main Street Fairness Coalition, according to the story. Treasurer Steve Grossman estimated $339 million in taxes lost.
The Governor said the state would collect 10's of millions from Amazon sales.
If the Massachusetts local retailers think this is somehow leveling the playing field, they are going to be very disappointed. Sure, a few local stores are worth shopping, but most have very poor selection, higher prices, limited hours, and don't get me started on the decline in customer service, know-nothing and indifferent salespeople, a bad shopping experience.
Money that will largely come from the middle class .... mini-me should talk to the bOss, who has been saying how we can't afford to increase taxes on the middle class.
It's not a new tax, as you're well aware. Why do you distort something just so you can make a disingenuous statement?
If you shopped online at Best Buy, Walmart, JCPenney, or Sears you would be charged sales taxes.
Besides, the middle class tax issue is NOT about what's affordable; it's about what's *fair*.
This is not about putting the Internet on equal footing with "main street" merchants and will probably not noticeably effect sales for local retailers or Amazon. I doubt any significant number of shoppers go online to save the sales tax. Shipping and handling charges will often eat up the tax savings.
I think people shop online for three reasons: convenience, larger selection, and lower prices (sales tax or not).
I'm all for this because I believe in paying the taxes I owe, but volutarily keeping track of purchases and sending in the taxes is a chore that's beyond reasonable.