As our newspapers reported in early March, Democratic Gov. Dannel Malloy’s administration initially resisted imposing a so-called Amazon tax on Internet sales, citing questions about its legality.
But the budget deal Malloy struck with legislative Democrats last week contained the Amazon tax.
So what’s up with the governor’s change of heart?
Malloy during a free-wheeling press conference this afternoon told reporters he hopes by joining other states, including New York and Rhode Island, in efforts to capture lost taxes on Internet sales, Connecticut will prompt the federal government to finally take up the issue.
“The Amazon tax is an important stake in the ground,” Malloy said.
But what about the legal questions? Doesn’t that pose a potential problem for Malloy’s budget? Some estimate Connecticut could bring in $9.3 million annually. That money may wind up uncollected if the matter winds up in court or if Amazon prevails in a pending case against New York.
Malloy said of course the revenue is important, but when he’s dealing with a $3.2 billion deficit, he’s got bigger worries.
“Big picture, it’s not a lot of money,” he said.