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Wednesday, December 12, 2012

Amazon To Charge Sales Tax In Mass.

Amazon logo as seem at am event in Santa Monica, Calif., Thursday, Sept. 6, 2012. (AP/Reed Saxon)

Amazon logo as seem at am event in Santa Monica, Calif., Thursday, Sept. 6, 2012. (AP/Reed Saxon)

Starting next holiday season, Massachusetts residents will pay taxes when shopping at online retail giant Amazon.com. The move comes after six months of discussions between Amazon and state officials, who estimate that the state loses $280 million annually through all online sales.

Federal law requires online retailers to charge sales tax in states where they also have a physical presence, in this case, a Cambridge, Mass.-based office and a North Reading, Mass. -based technology firm. Amazon already collects taxes in eight states, including California and Texas. New Jersey and Virginia are also slated to begin charging taxes to Amazon customers in the coming year.

Guest:

  • Kelli B. Grant, consumer reporter for Smart Money

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