Amazon to Begin Charging Sales Tax Nov. 1

By Jamie Ratliff
|  Wednesday, Oct 30, 2013  |  Updated 8:12 AM EDT
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Amazon will begin collecting sales tax, which will mean millions in additional revenue for the state. Many local businesses say it's about time.

Amazon will begin collecting sales tax, which will mean millions in additional revenue for the state. Many local businesses say it's about time.

In a couple days Connecticut will get what it's been fighting for.

Amazon will begin collecting sales tax, which will mean millions in additional revenue for the state.

Many local businesses say it's about time.

"People don't have to leave their house anymore to buy anything," said Lori Fazio, general manager for RJ Julia Booksellers in Madison. "We've had to do things to make it an experience to come in here."

For many local businesses, having online retailer Amazon collecting sales tax from Connecticut shoppers is just fair.

"It's not something that people really complain about when they're here, that they have to pay taxes, but it is something that they're used to online not having to do," said Fazio.

That's about to change. With Amazon planning to open a distribution center in Windsor, starting in November Amazon shoppers in the state will see their purchases totaled a little higher.

By Friday if you buy a TV on Amazon going for $239, it'll cost $254 after tax. That's a $15 increase. A $2,269 computer would jump about $144 dollars to $2,413.

The move is expected to bring Connecticut about 15 million dollars a year.

"The state agrees that they will not go after Amazon for failure to collect in prior years and will start clean just going forward in time," said Richard Pomp the Alva P. Loiselle Professor of Law at UConn.

While shopping from your computer is convenient, local businesses say consumers are beginning to see it may not always be for the best.

"I get donation requests all the time, and I'm happy to support the nonprofits in our area and the schools and the teams, and you're not going to get that online," said Fazio.

There is legislation pending in Congress called the Marketplace Fairness Act. It would give states the power to collect sales and use taxes from online retailers.
 

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