FAIRFIELD COUNTY, Conn. – Starting in November, Connecticut residents will no longer be able to escape paying the state’s 6.35 percent sales tax on Amazon.com, as the online retailer will begin collecting sales tax on Connecticut residents.
The reason is that, over the next two years, Amazon will invest $50 million in the state and create hundreds of new full-time jobs here, Gov. Dannel Malloy announced Monday afternoon.
“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 multimillion-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.”
Under federal law, out-of-state retailers can’t be required to collect sales tax in Connecticut. Malloy called Amazon’s agreement to begin collecting tax revenue in the state “a great step” but said the federal government needs to take action on the issue.
Lt. Gov. Nancy Wyman also applauded the deal, saying it is two more “significant steps” the state is making toward maximizing the revenue stream and job creation.
“This will both put people to work and help balance the budget, and we welcome Amazon as our newest partner in our effort to create long-term prosperity for Connecticut,” she said in the statement.
Amazon will start collecting state sales tax on Nov. 1.