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December 11, 2012

Amazon to begin collecting Mass. sales tax next year

BOSTON - Amazon, the world’s largest online retailer, will begin collecting Massachusetts sales taxes starting next fall under a new agreement with the state, according to the Patrick administration.

Small businesses have been pressuring Gov. Deval Patrick to reach a deal with Amazon over sales tax collections in time for this holiday shopping season, but the agreement will not take effect until Nov. 1, 2013.

"I value the contributions large and small employers alike make to Massachusetts' economic vitality, and this agreement captures that," said Gov. Patrick.

"We are thankful Amazon was willing to come to the table and we will continue our conversations with them about creating jobs here. This agreement is a win for all sides, and I am pleased it promises to generate millions in long-term revenue for the Commonwealth,” Patrick said in a statement.

Amazon will also support Massachusetts in its effort to promote a federal solution to the issue of online retailers collecting sales tax on purchases from individual states. A number of states, including New Jersey, have reached similar agreements with Amazon.

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