Amazon will now collect sales tax in Massachusetts
Your Cyber Monday shopping will cost you a little more next year.
Online retail giant Amazon has agreed to start collecting sales tax for orders shipped to locations in Massachusetts starting next year.
The agreement, announced today by Gov. Deval Patrick’s office, comes after local shop owners and municipal officials have been crying foul over the online company’s ability to provide customers a slightly cheaper alternative when shopping.
“Our members are grateful and relieved to know that they will not have to face another holiday sales season with a 6.25 percent tax disparity with the world’s largest online seller,” said Jon B. Hurst, president of the Retailers Association of Massachusetts. “Although we would have preferred a level playing field this holiday season, we are grateful to Governor Patrick for his tireless work on this issue.”
Sales tax must be collected by businesses with a physical presence in a state even if the purchase is made online. Amazon, which is based in Seattle, said it plans to increase its presence in Massachusetts.
In today’s announcement, Amazon said it plans to create “hundreds of high-tech jobs” in the coming years.
“I value the contributions large and small employers alike make to Massachusetts’ economic vitality, and this agreement captures that,” said Patrick. “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.”