Amazon to start collecting sales taxes in New Jersey in 2013

In a recent announcement, the state of New Jersey has revealed that it will begin collecting sales taxes from citizens who order products from Amazon.com. Additionally, New Jersey has also announced Amazon will open two distribution centers in the state.

The new sales tax will not go into effect until July 1, 2013, according to the state's press release. The terms of the agreement and the impact it will have on the state's operations are as follows:

According to the agreement between the New Jersey Division of Taxation and Amazon, the company will voluntarily begin to collect and remit New Jersey sales tax by July 1, 2013, or as of the effective date of federal legislation concerning state sales tax collection from out-of-state retailers, whichever is earlier. This means New Jerseyans will no longer have the required responsibility of tracking and reporting use tax owed on their online purchases from Amazon, and the State will receive the sales tax it is due to fund programs and services for its residents.

Two distribution facilities will help bring additional jobs to the state, including 1,500 permanent positions. Amazon will begin construction on the new distribution facilities next year.

Amazon has previously agreed to begin applying a sales tax to orders placed in Texas, according to the Houston Chronicle. The sales tax will begin being collected in Texas on July 1 of this year. Other states and the federal government have also been attempting to create legislation that will force Amazon and other online retailers to begin applying state sales taxes to online transactions in an effort to even competition with bricks-and-mortar retail outlets.

The online retailer currently collects sales taxes in Kansas, Kentucky, New York, North Dakota and Washington. Additionally, Colorado, Oklahoma, South Carolina, South Dakota, Tennessee and Vermont residents may or may not have to pay sales taxes on Amazon.com purchases depending on the items purchased and state tax laws.

Via: CNET News
Source: The State of New Jersey

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