Amazon Agrees to Collect Sales Tax in Connecticut
By Ina Steiner
Connecticut Governor Dannel P. Malloy announced an agreement under which Amazon will begin collecting sales tax revenue in the state beginning November 1, 2013. Amazon has been making similar agreements with other states, including Nevada, Massachusetts and Arizona, as it calls for federal legislation that would pave the way for states to begin requiring online sellers from out of state to remit sales taxes.
In a statement released by the governor, it acknowledged that under current federal law, out-of-state retailers cannot be required to collect tax on sales to Connecticut, leaving consumers with the burden of paying state use tax and facing penalties for failing to pay the tax.
Amazon also committed to investing $50 million in Connecticut and create hundreds of new full-time jobs over the next two years.
Gov. Malloy said, "All in all, this is a win for our state's taxpayers, our main street retailers, and our workforce. Amazon's multi-million dollar investment and the hundreds of jobs that will come with both the construction and operation of their future facility will unquestionably boost our local economy. Their agreement to begin collecting revenue is a great step, but federal action on this issue is still necessary."
Paul Misener, Amazon vice president, global public policy, said Amazon looked forward to working with Governor Malloy toward passage of the legislation now being considered by Congress that would "finally resolve the sales tax issue, level the playing field for all retailers, protect states' rights and allow states to collect the revenue owed."
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
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