Amazon to Collect Massachusetts Sales Tax Next Year

The state of Massachusetts has come to an agreement with online retail giant Amazon in regards to the latter collecting and remitting the state's sales tax at a rate of 6.25%. The deal marks the 12th state that Amazon will record sales tax in, beginning collection Nov. 1, 2013.

While federal law doesn't require online sales entities to collect Massachusetts state sales tax from buyers, those companies with a physical presence in the state are required to do so. Amazon's purchase of robotics firm Kiva Systems, located in the state, led to the company falling within the law's limits.

Gov. Deval Patrick said in a statement: "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."

Paul Misener, Amazon vice president of global public policy, was quoted in the Massachusetts press release as saying: "We look forward to creating hundreds of high tech jobs in Massachusetts and continuing to work with Governor Patrick, state leaders, retailers and Congress to pass federal legislation permitting interstate sales tax collection."


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