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Amazon To Collect Sales Tax In Massachusetts

Boston — will begin collecting sales tax in Massachusetts next fall.

The agreement, which goes into effect Nov. 1, 2013, was announced today by Gov. Deval Patrick.

“We are thankful Amazon was willing to come to the table and we will continue our conversations with them about creating jobs here,” Patrick said in a statement. “This agreement is a win for all sides, and I am pleased it promises to generate millions in long-term revenue for the Commonwealth.”

Amazon also pledged to create hundreds of high-tech jobs in Massachusetts in coming years, and to work with the Bay State toward enactment of federal legislation that addresses online sales tax collection at a national level.

“We look forward to … continuing to work with Governor Patrick, state leaders, retailers and Congress to pass federal legislation permitting interstate sales tax collection,” said Paul Misener, Amazon global public policy VP.  “Federal legislation is the only way to level the playing field for all sellers, the only way for states to obtain more than a fraction of the sales tax revenue that is already owed, and the only way to fully protect states’ rights.”

Massachusetts will join a roster of eight states where Amazon currently collects sales tax, including California, New York and Pennsylvania. New Jersey and Virginia will join Massachusetts in 2013, and three more states will follow in 2014.

Meanwhile, Senate proponents of an Internet sales tax amendment were unsuccessful last week in their effort to attach the measure to the defense bill. Sen. Dick Durbin, a co-sponsor of the Marketplace Fairness Act, said he will continue to push for the measure, either as a standalone bill or as a provision to larger legislation.