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Amazon to Start Collecting Sales Tax From Connecticut Consumers This Year

As of Nov. 1 all purchases in this state from the online retailer will include the 6.35 percent state sales tax.

 

Online retailing giant Amazon.com will start charging Connecticut sales tax on all purchases from this state beginning Nov. 1 under an agreement the company reached with the state this past weekend.

The move will mean that any purchases Connecticut residents make from Amazon, the world's largest online retailer, will include the state's 6.35 sales tax when buyers place their orders. The state currently only collects the sales tax when Connecticut consumers disclose their purchases at tax return time, something few residents are doing.

The agreement, which settles a two-year disagreement between the state and Amazon, is expected to bring another $15 million in revenues into the state's coffers by the end of 2014, the Connecticut Mirror reports.

In addition, it is expected to give a boost to "brick-and-mortar" local retailers, who have seen lost sales to Amazon.

The state loses an estimated $7 billion annually in sales tax revenues to online purchases, the website reports.

The state also announced Monday that Amazon intends to build a $50 million distribution center somewhere in Connecticut in the next two years, a facility that would employ about 300 people. The company has not yet announced where that center would be built.

David Cassenti February 06, 2013 at 12:56 PM
Any business with a presence in the state needs to collect sales tax here, so Amazon has to do it in order to get permission from the Malloy administration to build their distribution center. THIS is an example of "No New Taxes," just old taxes extended to new things.
East Haddam Resident February 06, 2013 at 01:36 PM
I have already emailed Amazon telling them I will be cancelling my account. Until Malloy stops spending, Im not paying any extra tax. Was it necissary to built a round about in Salem or do we really need anothet state garage built in Colchester. All I can say is I didn't vote for him. Those who did got what they wanted. More taxes, increased spending. Time to move to Texas.
Keep the river front for all of us February 09, 2013 at 07:07 PM
I also heard that replacing the bridge in Johnsonville is up for discussion. Give me a break......Johnsonville Rd. is just a cut-through.......I hope there is a study that shows that "commercial" vehicles and heavy traffic necessitates this expenditure.
Observor February 09, 2013 at 07:16 PM
Were that the issue it would be a simple matter to slap a weight limit on the Johnsonville bridge and direct trucks to cross the Moodus River on that nice new bridge we put in a couple of years ago on Moodus-Leesville Road at the end of Neptune Avenue.
Observor February 09, 2013 at 07:23 PM
I have no use for Dannel Malloy, new taxes or new state spending. But where Amazon is concerned we have to remember that they are being given a competitive advantage over retailers in Connecticut who employ people here. A while ago the YMCA wanted to run after-care programs in the East Haddam schools and they were rightly rejected. The East Haddam employers providing those services now should not have to compete with someone operating out of a tax-exempt, taxpayer funded building.
Keep the river front for all of us February 10, 2013 at 02:45 PM
If it were only that simple..........our government officials don't seem to understand anything about "simple" matters.........just expensive ones.

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