Business & Tech

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.

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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."

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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.


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