Amazon will begin collecting sales tax revenue in the state in November, just before the height of the Christmas shopping season.
Gov. Dannel Malloy made the announcement on Monday at the same time he announced that Amazon will invest $50 million in Connecticut over the next two years and create hundreds of new full-time jobs.
“All in all, this is a win for our state’s taxpayers, our main street retailers, and our workforce,” Malloy said in a statement. “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.”
Under current federal law, out-of-state retailers cannot be required to collect tax on sales to Connecticut.
Lt. Gov. Nancy Wyman said in a statement that this will put people to work and help balance the budget.
“We welcome Amazon as our newest partner in our effort to create long-term prosperity for Connecticut,” she said.
Paul Misener, Amazon vice president, global public policy, said these good paying jobs with good benefits.
“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,” he said.