Mass.: State to begin collecting sales tax from Amazon.com purchases

(AP) — Massachusetts residents have only a few days of tax-free shopping left on Amazon.com.

Beginning Friday, the state will apply its 6.25 percent sales tax to purchases made from Amazon, though the tax will not apply to third-party vendors who use the site.

The state reached an agreement with Amazon last year. Owners of traditional “brick and mortar” stores have long complained of being at a competitive disadvantage to online retailers who are not required to collect sales taxes.

State revenue officials tell The Boston Globe the tax on Amazon purchases is expected to raise nearly $37 million for the state in the current fiscal year.

A group representing brick and mortar businesses in Massachusetts has called for a federal law requiring states to collect sales taxes from all online retailers.


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