Amazon.com to collect sales tax from Massachusetts residents

Amazon.com to collect sales tax from Massachusetts residentsUnder a new agreement between the government of Massachusetts and Amazon. com, the online retailing giant will start collecting sales tax from residents of the state.

The agreement, which comes after several months of negotiations between the government and the company, will come into effect from 1 November, 2013. The agreement will now require the state's around 6.6 million residents to pay sales tax on their online purchases. Amazon will start collecting the state's 6.25-percent tax on Nov. 1, 2013 on all online purchases made in the state.

The office of Governor Deval Patrick has said that the company will support a federal bill that will allow states to charge sales tax in states where the companies do not maintain a physical presence. Massachusetts Secretary of Administration and Finance Jay Gonzalez said that the in order to be able to get the full benefit of the taxes, the federal government has to take appropriate steps.

Patrick said in a statement said, "I value the contributions large and small employers alike make to Massachusetts' economic vitality, and this agreement captures that. We are thankful Amazon was willing to come to the table and we will continue our conversations with them about creating jobs here. This agreement is a win for all sides, and I am pleased it promises to generate millions in long-term revenue for the commonwealth."

Amazon already has similar agreements with the state authorities in California, Texas and New York.