Amazon Starts Collecting Mass. Sales Tax

In case you might not have noticed, Amazon started collecting Massachusetts 6.25% sales tax as of this morning.

Amazon reached the deal with Mass DOR officials last year. Long sought by the state due to their insatiable appetite for tax receipts and also by brick-and-mortar stores that claim it will ‘level the playing field,’ the state projects it will bring in about $36 million in  additional revenues before the fiscal year’s end on June 30.

While many local merchants are expecting a sales jump this holiday season because of the leveling, I’m not so sure. My expectation is that Amazon will simply lose business as consumers move their shopping to lower cost alternatives. The big winner will again probably be the state of New Hampshire that has no sales tax and is only a short drive away for many in Massachusetts.

I’ll be interested to hear your opinion – will the added 6.25% cause you to purchase less from Amazon or will it not matter?

Author: Glenn Mores

President & CEO MicroData