Massachusetts will collect sales tax on Amazon.com purchases starting Friday. Credit: Getty Images
The days of tax-free shopping on Amazon are coming to an end for Massachusetts residents.
Starting this Friday, the state will apply its 6.25 percent sales tax to purchases made from Amazon, state revenue officials confirmed to the Boston Globe.
The tax will not apply to third-party vendors who use the site.
The changes are a relief for traditional stores, who have fought to have the tax placed on e-retailers since last year. Store owners say they are at a disadvantage since they have to charges sales tax, while online retailers do not.
The Marketplace Fairness Act, which was passed by the Senate in May but then stalled, is a federal bill that would require state sales tax collections for all Internet sales. Many store owners hope the act will go into action so Amazon shoppers won't just head to another website.
“The consumers who shopped on Amazon to avoid the sales tax are just going to jump over to Overstock or eBay,” Retailers Association of Massachusetts President Jon Hurst told the Globe. “We still need Congress to act and tax all online sellers.”