Post Content

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.)

Written By:

Recent Posts

DOR Announces Updates to Offer in Compromise Program posted on Jan 10

The Massachusetts Department of Revenue (DOR) has updated its Offer in Compromise (Offer) program to streamline the process and incorporate best practices. Offer overview An Offer is an agreement between the taxpayer and DOR to settle a tax liability for less than the full amount   …Continue Reading DOR Announces Updates to Offer in Compromise Program

In Case You Missed It… posted on Dec 14

In Case You Missed It...

“If it isn’t on YouTube, it might as well have never happened.”- Gordon Korman Videos, Videos, Videos! In our What’s New at DOR update we highlighted our MassTaxConnect video tutorials as well as four videos to guide you through 2022’s filing season. Since the tutorials launched, we provided both English and Spanish subtitles for every video. Subscribe to DOR’s YouTube channel to   …Continue Reading In Case You Missed It…

Jobs! Jobs! Jobs! posted on Dec 13

Jobs! Jobs! Jobs!

Opportunities for employment abound here at the Massachusetts Department of Revenue. We are currently hiring for some of our key teams like the Fraud Unit, Tax, the Contact Center and the Collections Unit. What makes us stand out in the job market these days? Two   …Continue Reading Jobs! Jobs! Jobs!