Connecticut and Amazon reach deal on sales tax

Amazon will begin collecting sales tax on transactions where buyers are in Connecticut. The deal is part of an agreement that Gov. Dannel P. Malloy says will mean hundreds of new jobs and $50 million in investment in Connecticut over two years, the governor’s office announced Monday.

Amazon will begin collecting sales taxes on Connecticut purchases in November 2013.

“All in all, this is a win for our state’s taxpayers, our main street retailers, and our workforce,” Malloy said in a statement. “Their agreement to begin collecting revenue is a great step, but federal action on this issue is still necessary.”

The statement refers to Amazon’s “construction and operation ” of a future “facility” but does not elaborate.

The agreement allows the state to address an issue over collection of online sales tax. Out-of-state retailers are not required to collect taxes on sales to Connecticut.

Paul Misener, Amazon vice president, global public policy, said in a statement that the company looks “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.”

“This has been one of our top priorities for over a year now,” said Department of Revenue Services Commissioner Kevin Sullivan. “It’s a great result for our consumers and businesses, state and local revenue, new investment and new jobs.”

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