clock menu more-arrow no yes

Filed under:

Gov. Patrick Demands Sales Tax on Amazon, Controversy Ensues

Governor Patrick via Getty
Governor Patrick via Getty

Racked is no longer publishing. Thank you to everyone who read our work over the years. The archives will remain available here; for new stories, head over to Vox.com, where our staff is covering consumer culture for The Goods by Vox. You can also see what we’re up to by signing up here.

In a battle between Amazon customers and the bottom line of our local "Main Street" businesses, Governor Deval Patrick sided with Massachusetts commerce today, pushing a strongly made case for lost wages, sales, and tax revenue (BostInno reports $387 million for taxes alone) in Amazon's neglect to collect the 6.25% sales tax due to a twenty year old federal loophole.

While Boston magazine cites some irritated consumers, the agreement between the state and Amazon—which has a physical presence now in Massachusetts, thus requiring them to legally comply—bodes well for most parties involved, especially the state's long term revenue stream and the ability of small retailers to compete with a mega-player like Amazon. Cheers to equalizing all Mass-made sales as of next November, 2013. So what if they call us Taxachusetts?
· Amazon will start collecting MA sales tax on online purchases [BostInno]
· Prepare to pay sales tax on Amazon [Boston Magazine]