A little less than a year from now Amazon will begin collecting and remitting sales tax in Massachusetts. The plan is expected to bring in tens of millions of dollars in revenue for the state. The decision comes after Patrick-Murray administration reached an agreement with the retailer.
In a written statement the Governor said quote, "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."
In addition to charging the state's 6.25 percent in sales tax to residents the company says that whey will work with the administration to enact federal legislation for collecting sales tax for online retailers.
The Secretary of Administration and Finance Jay Gonzalez added in the statement that, "Massachusetts and other states will receive the majority of the revenue owed only when Congress passes federal legislation, and we encourage Congress to act."
Amazon says that the new deal with the state will bring in hundreds of high tech jobs to the area. But, many residents say they aren't too happy about having to pay more when they shop at the online site.
"We got away with a couple years on it and all of the sudden they want more taxes," said West Springfield resident, Thomas Garczynski. "You know we pay enough in taxes around here, let alone..."
"Well I think that is one of their advantages is that they don't (charge sales tax)," said Agawam resident Joseph Ryan. "I think if they start charging sales tax it is going to hurt their business."
In fact, some consumers say having to pay the tax may deter them from using the site.
"I'd do the math and see if it is still cost savings for me. If it's not then I would buy locally," said Ryan.
The agreement will take effect Nov. 1 of next year.
Copyright 2012 WSHM (Meredith Corporation). All rights reserved.
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