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Amazon.com to Collect State Sales Tax: Will It Change the Way You Shop?

The Internet retailer said the collection would begin in time for next year's holiday shopping season.

Checking out at Amazon.com will be a little pricier starting next November. The Internet retailer will start collecting Massachusetts state tax for next year's holiday shopping season.

Gov. Deval Patrick's office announced the deal Tuesday, stating the company would be adding jobs to Massachusetts in the next few years.

Amazon.com and Patrick said they would work together to support a federal bill allowing individual states to collect sales tax in states where they have no physical location.

The co-owner of one well-known Boston area business that has been hit hard by Amazon's tax-free run is is celebrating the decision.

"For every brick and mortar retailer, this is a huge victory,” Dana Brigham of Brookline Booksmith told CBS Boston. "It is beyond about time and I wish it was yesterday instead of fall of 2013 when it would take effect."

Patrick said the agreement would generate millions in long-term revenue for the state.

"We are thankful Amazon was willing to come to the table and we will continue our conversations with them about creating jobs here," he said in a press statement. "This agreement is a win for all sides."

Will this change how you shop online? Will this be a shot in the arm for local brick-and-mortar retailers? Tell us in the comments.

Don Hammond December 13, 2012 at 08:29 PM
I agree. I'm just pointing out the way things are. Things are broken and need to be fixed. Posting on Danvers Patch isn't going to fix it. Some of the politicians we are electing aren't either but that's another whole topic. I just don't understand how NO ONE wants to pay the state sales tax and when we had the chance to vote to lower it, it didn't pass???? I listen to customer's complain about the sales tax all day. I never hear anyone say "Oh, you are going to tack on another 6.25 percent....thanks!" I started getting charged tax on my business software monthly support. These people are in Texas. I called them and asked why I was being charged for support, that it seems it would be under labor. They said it's considered a use tax. Well I purchased the software once already, why am I paying a tax on it monthly? So I called the state and read up on the tax laws....... they were right. It's outlined specifically for software and support. They same way I have to charge sales tax on equipment rental. People argue with me all the time that they aren't buying it, they are renting it.....like I'm pocketing the tax or something. I'm charging you because it's the law.....
Bill December 13, 2012 at 10:09 PM
Prediction: NH has a sales tax within 5-7 years. The state is turning blue with all the Mass. rejects moving up there and they lost the "Live Free of Die" spirit. They keep electing Dem liberals to take care of them. A mess.
Sean Ward December 14, 2012 at 02:50 AM
Don, it was voted down because you can't just eliminate it all at once. We were presented with a ridiculous option that they knew we wouldn't be able to go for. They should have asked if we were interested in gradually reducing the tax and offered a list of what money they would stop wasting to balance the budget. We knew that without spending cuts if we voted away the sales tax we would just end up with higher property or income tax. Cut costs first then eliminate the state tax.
Andrew Johnson, CPA December 19, 2012 at 11:48 PM
Genius comment!
Andrew Johnson, CPA December 20, 2012 at 12:14 AM
Maybe your comment will go viral: http://info.peisnerjohnson.com/blog/bid/194320/Level-The-Playing-Field-Hold-On-To-Your-Wallet

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