Amazon.com and the state of Connecticut announced earlier today that they have reached an agreement: the online retail behemoth will start collecting and remitting sales tax in the Constitution State on November 1, 2013. The deal ends a dispute that began in 2011, when Governor Dannel P. Malloy (D) and the Connecticut legislature enacted remote sales tax legislation. The Connecticut state sales tax rate is 6.35%.
A press release issued by the governor's office states that Amazon will "invest $50 million in Connecticut and create hundreds of new full-time jobs." The governor called the agreement "a win for our state's taxpayers, our main street retailers, and our workforce." The location Amazon's future Connecticut facility has not yet been announced.
At the same time, the governor reminded that the federal government needs to address the remote sales tax issue: "[Amazon's] agreement to begin collecting revenue is a great step, but federal action on this issue is still necessary."
Paul Misener, Amazon's vice president of global public policy, echoed the governor. He said Amazon "look[s] forward to working with Governor Malloy toward passage of the legislation now being considered by Congress that would finally resolve the sales tax issue, level the playing field for all retailers, protect states' rights and allow states to collect the revenue owed."
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