Amazon to Begin Collecting Sales Tax July 1

On Monday, July 1, Amazon.com will begin collecting and remitting sales tax to New Jersey for purchases made by New Jersey residents. Amazon.com agreed to collect sales tax in exchange for opening two new warehouses in the state. The online giant already has subsidiaries in the state, including Audible and Suidsi. After July 1, Amazon.com will be collecting sales tax in 10 states.

According to NorthJersey.com, Amazon promised to invest $130 million in two distribution centers, and the state noted that the online retailer will be eligible to apply for economic incentives to build the facilities.

The governor’s office expects that Amazon.com will collect between $30 million and $40 million in sales taxes in the first year, the article noted.

At present, ABA data show that 57 percent of the U.S. population currently resides in states with sales tax fairness laws. And 48 percent of the population lives in states where Amazon.com collects and remits sales tax. 

Amazon.com now collects in the following states: Arizona; California; Kansas; Kentucky; New York; New Jersey (as of 7/1/13); North Dakota; Pennsylvania; Texas; and Washington.