Amazon, who is planning to install two new distribution centers in New Jersey, which would create 1,500 new jobs, is now going to be charging sales tax in that state in July, 2013. Amazon has had issues with taxes in various locales, where ‘Amazon Laws” have been revoked in states like Hawaii and Colorado, and upheld in California.
Now New Jersey will begin charging 7% on all Amazon orders, regardless of whether or not the distribution centers are actually built. NJ governor Gov. Chris Christie states, “We will now in the state of New Jersey begin collecting sales tax at least from a fraction of the market we otherwise would not have gotten.” Out of state retailers presently don’t collect tax from New Jersey customers, and consumers are expected to pay when they file their tax returns, though not many do.
Amazon had been lobbying for a 2-year tax break on the state which was delayed in the senate, essentially in return for the facilities. Now taxation is moving along regardless of what Amazon plans to do – New Jersey Assembly member Al Coutinho (D-Essex), commenting on allowing Amazon their tax holiday, stated, “We need jobs, economic growth and a level playing field, and we get all three with this agreement.” Still, Christie points out that the new taxes will create thousands of jobs in the state, and bring in roughly $40 million. Paul Misener, Amazon’s vice president for global public policy, states, “Certainly we’re going to have to work out the economic development arrangements.”