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Amazon Agrees to Collect Tax in New Jersey


A New Jersey state lawmaker confirmed that Amazon will begin collecting sales tax from New Jersey residents in 2013, according to Bloomberg. 

Governor Chris Christie announced that Amazon will begin collecting New Jersey's 7% sales tax effective July 1, 2013. In return, Amazon will "bring $130 million in investments and 1,500 full-time jobs" to the state. In 2013, Amazon will build two distribution facilities in New Jersey.

Before this agreement lawmakers were considering legislation to create a temporary exemption deal, and to expand New Jersey's nexus laws.

According to Bloomberg Businessweek, New Jersey may gain as much as $40 million per year in additional sales tax revenue from Amazon collections.

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Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.