Time to pony up taxes on Amazon buys

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Attention shoppers:

The era of tax-free shopping over Amazon.com will close tonight at 11:59 p.m.amazon

Shopping resumes at 12 a.m. — with a 6.35 percent state sales tax.

That change, part of a broader settlement between state officials and the Seattle-based retailing behemoth, was first announced in February. It could bring in $15 million in additional tax revenue this fiscal year alone, state officials are saying.

The retailer is also moving forward on a plan to bring a $30 million distribution center — and supposedly 300 new jobs, all without incentives — to Connecticut. One likely candidate for that site is Windsor, as the Hartford Courant has reported.

In February, Kevin B. Sullivan, commissioner of the state’s Department of Revenue Services, told Hearst Connecticut that Internet retailers generate about 40 percent of their annual income in November and December, so it was important to get the agreement to take effect at the start of the holiday sales season.

Well, the clock is ticking.

State officials and other observers said this would likely benefit brick-and-mortar businesses that find it hard to compete with an online giant that can so easily undercut on prices.

We’ll have more on this story as the day progresses…

Feel free to email me at tloh@scni.com to share your thoughts.

Categories: General
Tim Loh

17 Responses

  1. Ed P says:

    Thanks Malloy and you tax raising, big spending (of other peoples money) goons!

  2. Mike says:

    No maybe Amazon will reactive te my affiliate account since they’ll have to charge sales tax anyways. That was the unit ended consequence from Connecticut claiming affiliates were the equivalent of have a physical location. As a result Amazon canceled Ct Affiliate accounts and the state lost income tax from those individuals who no longer made an income from Amazon.

  3. Truth says:

    Ct. a welfare state that can not get enough from the taxpayers. The new taxes will pay for the deadbeats that populate our cities and towns. When my time comes I am moving out and I will not miss this dump.

  4. graham says:

    government is out of control

  5. BahoPuwet says:

    @Kevin B. Sullivan,
    Yeah BUT who on planet earth is honest enough to file/report a Use Tax? I bet ya u ask 100 taxpayers and 98 of them won’t even know what Use Tax is.

  6. Chris says:

    Residents are to pay sales tax anyway via the income tax form so isn’t anything new.

  7. jim says:

    Thanks Danny Boy…….all packed and ready to go?????

  8. Kevin B. Sulllivan says:

    All sales in or into Connecticut are already taxable – either as sales tax by the seller or use tax by the purchaser. What this means is that Connecticut businesses no longer face unfair competition from Amazon and Connecticut consumers are no longer faced with attesting subject to legal penalties or paying use tax when we pay income tax. What’s missing? Beating the special interests in the U. S. House and passing the bipartisan legislation overwhelmingly approved by the Senate to have a level competitive playing field in all states for all retailers.

  9. ChrisInBpt says:

    There’s plenty of other online sites to shop from. I will continue to buy elsewhere and not pay CT’s ripoff tax.

  10. chris says:

    Just because Amazon did not charge sales tax, those that purchase anything on that website are actually required by law to report anything that wasn’t taxed and include that on your tax form at the end of the year. Now how many have actually done that?

  11. Peter says:

    Guess I stop shopping at Amazon

  12. John says:

    The thieves in Hartford stealing more of our money for reckless and out of control spending. I will cancel my Amazon account and shop elsewhere on the internet where no CT sales tax is collected. [This post has been edited by the moderator for language according to our terms of use.]

  13. sunsethous says:

    Much as I hate to pay taxes, it is only fair. Not only Amazon’s size, but its tax-free status has hurt local businesses very much.

  14. Buck Swope says:

    Attention law makers, Amazon is not the only website on the Internet. Many other tax free options are just a click away.

  15. droidgee says:

    $15 million is a drop in the bucket.

    I bet they could make a whole lot more with tolls on all of the NY and Mass. vehicles coming thru the state for free!

  16. igor says:

    The state can’t keep their hands out of our pockets. I’m surprised that we aren’t taxed on the air we breath. Another nail in the coffin./ No wonder this state is going down the toilet.

  17. Chris J says:

    Yes, we know the plan …take more money from the hard working middle class, and dole out more free stuff to union leeches and deadbeats in Bridgeport, New Haven, Danbury, etc… nice work Danny, enjoy your last year in office.