Starting in November Amazon shoppers in Connecticut will be paying sales tax on their purchases.
The announcement was made today by Connecticut Governor Dannel P. Malloy and Amazon as part of a larger agreement that includes a $50 million investment by Amazon in this state that is supposed to create hundreds of new jobs.
“All in all, this is a win for our state’s taxpayers, our main street retailers, and our workforce,” said Governor Malloy. “Amazon’s multi-million dollar investment and the hundreds of jobs that will come with both the construction and operation of their future facility will unquestionably boost our local economy. Their agreement to begin collecting revenue is a great step, but federal action on this issue is still necessary.”
“These are two more significant steps that our administration is making to create jobs and maximize our revenues whenever possible,” Lt Governor Wyman said. “This will both put people to work and help balance the budget, and we welcome Amazon as our newest partner in our effort to create long-term prosperity for Connecticut.”
Under current federal law, out-of-state retailers cannot be required to collect tax on sales to Connecticut. Residents are supposed to voluntarily pay the state for the taxes they avoided on Internet purchases.
“We thank Governor Malloy for his strong commitment to Connecticut jobs and investment,” said Paul Misener, Amazon vice president, global public policy. “These are good paying jobs with good benefits that will contribute to the fabric of Connecticut communities. We are delighted to make this announcement today, and look forward to working with Governor Malloy toward passage of the legislation now being considered by Congress that would finally resolve the sales tax issue, level the playing field for all retailers, protect states’ rights and allow states to collect the revenue owed.”
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