Wednesday, May 30, 2012

Amazon, New Jersey In Deal For Tax Collection, Distribution Centers

Amazon.com will start collecting taxes for the state of New Jersey, in addition to opening up two new distribution centers in that state, as part of a deal brokered by New Jersey Governor Chris Christie, Christie announced Wednesday. According to the Governor, the long term partnership with Amazon.com will result in the construction of two fulfillment and distribution centers in the state of New Jersey, expected to open in 2013. New Jersey said that the deal comes as it has reached an agreement with Amazon.com with regards to the firm's obligation to collect sales tax on purchases by New Jersey consumers. In that deal, the state said that Amazon will begin to voluntarily collect and remit new Jersey sales tax by July 1, 2013, or on the the effective date of federal legislation concerning state sales tax collection from out-of-state retailers, whichever is earlier. New Jersey is one of many states which has been looking at Amazon.com as a potential cash cow -- and savior -- for beleaguered state budgets.