AP News

Mass. starts collecting tax on Amazon purchases


BOSTON (AP) — The days of tax-free purchases on Amazon.com Inc. are over for Massachusetts residents.

As of Friday, the state's 6.25 percent sales tax applies to purchases made on the online retail 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 expect the tax on Amazon purchases is expected to raise nearly $37 million for the state in the current fiscal year.

Amazon plans to add hundreds of high tech jobs in Massachusetts.

More than a dozen other states collect sales taxes from the company.


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