What you buy on the popular online shopping site, Amazon.com, will subject to Connecticut sales tax later this year — just in time for online Christmas shopping.
Governor Dannel P. Malloy made this announcement on Monday, Feb. 4, and also announced that over the next two years, Amazon would invest $50 million in Connecticut and create hundreds of new full-time jobs by building some sort of facility in the Nutmeg State.
“All in all, this is a win for our state’s taxpayers, our main street retailers, and our workforce,” Malloy said. “Amazon’s multi-million dollar investment and the hundreds of jobs that will come with both the construction and operation of their future facility will unquestionably boost our local economy. Their agreement to begin collecting revenue is a great step, but federal action on this issue is still necessary.”
Under current federal law, out-of-state retailers cannot be required to collect tax on sales to Connecticut, leaving consumers with the burden of paying state-use tax and facing penalties for failing to pay the tax. Beginning Nov. 1, 2013, — at the start of the two biggest retail sales months of the year — Amazon will start collecting and remitting state sales tax.
“These are two more significant steps that our administration is making to create jobs and maximize our revenues whenever possible,” Lt. Gov. Nancy Wyman said. “This will both put people to work and help balance the budget, and we welcome Amazon as our newest partner in our effort to create long-term prosperity for Connecticut.”
“We thank Governor Malloy for his strong commitment to Connecticut jobs and investment,” Paul Misener, Amazon vice president of global public policy, said Monday. “These are good paying jobs with good benefits that will contribute to the fabric of Connecticut communities. We are delighted to make this announcement today, and look forward to working with Gov. Malloy toward passage of the legislation now being considered by Congress that would finally resolve the sales tax issue, level the playing field for all retailers, protect states’ rights and allow states to collect the revenue owed.”
“With strong support from Gov. Malloy, this has been one of our top priorities for over a year now,” Kevin Sullivan, the state Department of Revenue Services commissioner, said. “It’s a great result for our consumers and businesses, state and local revenue, new investment and new jobs. Amazon is a great company. Good tax policy can be good business policy too.”
Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995.