Amazon to Collect Maryland Sales Tax on October 1, 2014
- Sep 22, 2014 | Gail Cole
Amazon will begin collecting Maryland sales tax on October 1, 2014. This is not a surprise. Since the company announced in October 2013 its plans to build a one million square-foot fulfillment center in Baltimore, sales tax collection became a “when,” not an “if.” Any business with a physical presence in a state (such as a giant warehouse) is required to collect and remit that state’s sales tax.
According to Mike Roth, Amazon’s vice president of North America operations, the fulfillment center will mean full-time jobs for more than 1,000 Maryland residents. Governor Martin O’Malley has said he is “thrilled that Amazon is joining our community of businesses that surround the Port of Baltimore.” His sentiment is echoed by Baltimore Mayor Stephanie Rawlings-Blake and the Baltimore Development Corporation.
Fulfillment By Amazon beware
The Baltimore fulfillment center may trigger a sales tax obligation for other businesses through Amazon’s Fulfillment by Amazon (FBA) program. FBA sellers store their products in Amazon fulfillment centers and Amazon employees “pick, pack, ship, and provide customer service for these products.” When FBA sellers’ products move into the new Baltimore facility, ta da! They have nexus in Maryland.
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