Amazon unlikely to collect MA sales tax before Christmas

BOSTON (WWLP) — Local businesses have been pressuring the state to collect the sales tax from popular online retailer Amazon.com, but the Governor doesn’t think that a deal on the matter will be reached in time for the holiday shopping season.

Governor Deval Patrick told 22News that he is optimistic talks his administration has been having with Amazon.com, but added that it's unlikely an agreement will be made in time for Christmas.

“I doubt, I'm just not sure that we're going to have an agreement in place in time for the holidays, but it's been a very open, very encouraging conversation,” Patrick said. “I'm  hopeful.”

Massachusetts retailers are worried that they will lose business to big online giants like Amazon, which is able to avoid the state’s 6.25% sales tax due to their lack of physical presence in the state, such as a warehouse. Still, for Amazon the lines have been somewhat blurred, as the company does own a technology firm in Massachusetts.

As the negotiations with Amazon continue, Treasurer Steve Grossman wants to eliminate tax-free shopping online altogether. He is urging the U.S. Senate to pass a bill that would allow all states to collect the sales tax from online retailers.

Copyright 2014 WWLP TV. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

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