Want Amazon to collect sales tax? Be nice to them!!

By February 5, 2013 Retail

Just saw that Connecticut has reached an agreement with Amazon for the e-tailer to start charging sales tax on sales made to that state.  This will begin November 1, 2013.  A couple of years ago the state had passed the “Amazon Nexus” legislation with high hopes that the retailer would start collecting tax.   Just the opposite occurred.  Amazon cancelled the agency agreements that were supposed to be creating nexus for them and $0.00 sales tax was collected.

Since then, Amazon has invested $50 million in distribution facilities and will hire several hundred Connecticut workers.  As such, the state is more than happy to forgive and forget all those nasty things they said about Amazon a couple of years ago.   This seems to be a trend. Texas has also stretched out its welcome mat to Amazon after assessing them $300 million in sales tax just a few years ago.

So, if a state want’s to get Amazon to start collecting sales tax, be nice to them.  You never know what might happen.   http://www.salestaxstrategies.com

Ned Lenhart