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 is going to 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.

Daniella Ruiz February 05, 2013 at 04:39 PM
jeeeeeez, more money for the legislators to squander! we need a foreign company to start up 50 different companies in every state, and only sell to all the other states. create a network that sends local buyers transactions to another state, (a different company) to complete a purchase, hand it off to some drop ship warehouse in Midwest (Or easier, from CHINA!!! ;-)) for shipment. (It would take a looong time for all the nations to agree on how to tax EVERYONE FOR ANYTHING THEY DO ha ha ha ha) these taxes are eroding the value of individual's capacity to survive, while the heavy hand of govt holds everyone hostage to their wanton ways of spending and union pandering.
Waterford Guy February 05, 2013 at 05:00 PM
Instead of charging sales tax to Amazon purchases in order to "level the playing field" for so-called "brick and morter" businesses, why don't we get rid of the sales tax all together and do that to help the "brick and morter" businesses. Wait! I know why. The government at every level is not about helping anyone except themselves, and stealing every penny they can possible sqeeze out of thier subjects....errrr I mean citizens.


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