Amazon, the world’s largest online merchant, said Tuesday that it has agreed to start collecting the state’s 6.25 percent sales tax in Massachusetts next November, a move that will cost consumers but generate tens of millions of dollars for Beacon Hill.
The deal came out of six months of negotiations between state officials and Amazon.com Inc. Online merchants are supposed to collect sales taxes if they have a physical presence in a state, and Amazon now has a Cambridge office and a North Reading technology firm.
Comments
That's a tax on the MIDDLE CLASS. Whers's Barack Obama and Elizabeth Warren on this? You people that thought that only the Rich would be taxed are FOOLS.
Why isn't Scott Brown fighting this--he of the Grover Norquist pledge?
Right wing nut jobs never let the facts get in the way of their whining. This is just a more efficient mechanism for the state to collect the taxes that are legally due.
We ain't Taxachussets for nuthin'!
Although I do hope it helps local brick--and-mortar retailers as people may possibly return to those shopping options.
Uh, Texas does this, too. *Texas.*
The State crooks are at it again - stealing from hard working residents. The answer to fairness is not to add on-line taxes but to eliminate sales tax on all retailers. Taxes collected are only wasted. We do not to feed the monster.
Your health, safety, economic vitality are all possible because we've collectively decided that it's good to have paved roads, higher education, etc. If you want to find out what "less government" feels like check out Somalia or Sudan. If you want a to go somewhere with more government, try Sweden or Norway. I know where I'd rather live.
In yesterday's article on the topic, the amount of taxes lost to online sales was $387 million. Today it dropped to $280 million. At this rate will be making money on it in a few days.
You mis-read yesterday's article, which was the estimated total taxes lost from all Internet sales, not just Amazon. The $280 is the estimated loss of business by local stores, and not about taxes.
The only question is - how much will MA receive and Amazon keep of the 6.25% of each sale?
Every time I read a stupid article and the accompanying stupid comments on this topic it makes my head want to explode. Amazon collecting sales tax will make close to zero percent difference in people's shopping habits. Any merchant who is delusional enough to think they're struggling because Amazon doesn't collect sales tax deserves to go out of business. Most of us shop with Amazon because of their convenience, selection, prices and reliability. Even with sales tax added their prices are likely to be better than you will find elsewhere. I try to buy locally whenever I can even if I do pay a little more, but the fact is most of the things I want to buy simply aren't available any longer in any of the local brick and mortar stores. I predict that next year when Amazon starts collecting sales tax their sales will continue to increase and the local merchants sales will continue to decrease.
I agree, although I'm not quite so emotionally involved that my head is about to explode. haha.
There are people, though, who are obsessed with "saving" every penny they can. Some drive to New Hampshire, not for a new refrigerator, but to shop at Walmart or Target. Probably spending as much as they saved in gasoline and wear and tear on their car.
and next Nov when I decide to buy something online when I add the 6.25% for Amazon vs EBay I will choose the lowest price every time.
being a MA resident who lives on Haverhill - I can walk to NH if I had to and never pay 6.25% more if I have too.
I love Amazon but can find a competetive price on EBay
And obviously you expect other taxpayers to pick up your share of the cost of state government.
Hardly a deal breaker. I'm surprised it took this long, and it's only a matter of time before it spreads to all the states, and for more online retailers to have to do so. You cannot hold back the inevitable. If online shopping is here to stay, as it is, then states will find a way to tax the transactions. Amazon, because of its model, still has the best prices on almost everything, so I doubt this will change most buyers' habits. They may grumble next Black Friday, but they'll still click "Add to Cart", most likely in record numbers.
I use Amazon.com all the time and its not to avoid sales tax. Anyone who actually says they MAY shop at a book store now is a knucklehead. They will still use Amazon.com.
I love the idea of local bookstores but where I live I have none. Not to mention the price of everything is already lower on Amazon.com regardless of if I pay tax there or at somewhere else.
Let's move on.
I am so happy to now be able to pay more taxes to the state because I know that they will spend it more wisely than I ever could.
JimboJive has the answer! Bad news for citizens, never mind consumers. This just means more money for the state to waste on something.
It seems very fair, espcially in light of all the scofflaws the State does not bother to pursue. Those taxes are owed either way, this is a more equitable way of collecting them and not penalizing the 1% who do pay user tax. Plus, it really DOES level the playing field for local retailers. I buy a ton of stuff on Amazon and will continue to if their prices are still competitive, even with tax. However, I often go out of my way to buy locally. As one commentator said though, selection and accessibility (especially without a car) are a huge issue in the immediate Boston vicinity.