The Los Angeles Times yesterday ran an eye-popping story reporting that giant internet retailer Amazon, which has steadfastly refused to act as a sales tax collector for states, is now working the other side of the street and is selling its services as a tax collector for other merchants who sell products through its site.
Amazon "is now offering to handle sales-tax chores for merchants who sell products through its site for a fee equivalent to 2.9 percent of the taxes collected," the Times reported.
The irony here is that Amazon has been at the forefront of internet retailers who have vigorously opposed efforts to make them sales tax collectors.
The LA Times called the company's decision to sell itself as a tax collector "an abrupt about face."
In California, Amazon agreed this year to abandon an effort to repeal a new Internet sales tax law passed by the state legislature and instead agreed to start collecting and remitting California's 7.25 percent sales tax, plus local taxes, beginning September 15, 2012.
In the past few months, the company's executives have said they would prefer to see national internet sales tax legislation passed, rather than have individual states pursue their own policies.
Amazon does not collect sales tax on items it ships into Massachusetts because the company has no physical presence (warehouses, distribution centers) in the state.
(Editor's Note: On November 10, the Associated Press reported that momentum is growing in Congress, with evidence of bipartisan support, for legislation to require internet retailers to collect sales tax.)
EITC – Helping Low and Moderate Income Families in MA posted on Jan 29
EITC, also known as the Earned Income Tax Credit, has been helping low to moderate income families in Massachusetts and across the country for over 40 years. In recent months, Governor Charlie Baker and members of the Legislature have worked hard to ensure that working …Continue Reading EITC – Helping Low and Moderate Income Families in MA
DOR Homepage gets a facelift posted on Jan 14
Today, DOR unveiled a brand new homepage intended to making it easier for taxpayers to find what they’re looking for when it comes to filing and paying their state taxes. DOR’s communications team used consumer insights and online analytics to better understand how taxpayers use the site, …Continue Reading DOR Homepage gets a facelift
Did You Know Home Heating Oil is Mass Sales Tax Exempt? posted on Jan 14
In preparation for the winter months, we want to remind you that home heating oil is exempt from Massachusetts sales tax. This winter season, DOR wants you to be prepared. Here’s what you need to know when purchasing your home heating oil: Who is exempt …Continue Reading Did You Know Home Heating Oil is Mass Sales Tax Exempt?