Amazon.com and the State of Connecticut have reached an agreement regarding the collection of sales tax, and the online retailer says it will create Connecticut jobs and invest $50 million in the state over the next two years.
“All in all, this is a win for our state’s taxpayers, our main street retailers, and our workforce,” said Governor Dannel P. Malloy. “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.”
Amazon will begin collecting the 6.35% Connecticut sales tax on November 1, 2013 – just as holiday shopping typically begins.
“We thank Governor Malloy for his strong commitment to Connecticut jobs and investment,” said Paul Misener, Amazon vice president, global public policy. “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 Governor 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.”
The move comes after state officials attempted to tax Amazon sales based on affiliate marketers who reside in the state. Affiliate marketing allows a website owner to link to Amazon products and receive a commission based on the sales that result from those clicks. Amazon responded to the state’s action by terminating Connecticut-based affiliates. Read more on the issue here.
A formal announcement will begin at 10 a.m. this morning.