Time to pony up taxes on Amazon buys

 

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.

Tim Loh