Amazon to collect tax in the state; create jobs - CBS 5 - KPHO

Amazon to collect tax in the state; create jobs

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HARTFORD, CT (WFSB) -

Gov. Dannel Malloy and Amazon officials announced that over the next two years, the online retailer will invest at least $50 million in the state and will create hundreds of new jobs.

Malloy made the announcement at the same time he announced his agreement, under which Amazon will begin to collect taxes in the state.

"All in all, this is a win for our state's taxpayers, our Main Street retailers, and our workforce," Malloy said. "Amazon's multi-million dollar investment and the hundreds of jobs that will come with both the construction and operation of their future facility will unquestionably boost our local economy. Their agreement to begin collecting revenue is a great step, but federal action on this issue is still necessary."

Lt. Gov. Nancy Wyman also praised Amazon's investment.

"These are two more significant steps that our administration is making to create jobs and maximize our revenues whenever possible," she said. "This will both put people to work and help balance the budget, and we welcome Amazon as our newest partner in our effort to create long-term prosperity for Connecticut."

Under current federal law, out-of-state retailers can't be required to collect tax on sales in the state, which leaves consumers with the burden of paying state use tax and will possible penalties for failing to pay.

Starting Nov. 1, prior to the busy Christmas shopping season, Amazon, which is the world's largest online retailer, will begin to collect state sales tax.

"It's quite clear that they're doing well in our state and they wanna play by appropriate rules," Malloy said. "This is not the only state that they've reached agreement in and we're happy to be on the front end of those transactions."

Up until the agreement was signed, online shoppers had to voluntarily declare their online purchases and pay the state sales tax, which meant a lot of it went uncollected. Shoppers we spoke with seem to have known this day would come.

"I guess that's just the way life is. Everything is taxed," said Alisa Dellabianca of Bristol. "I mean I work every day and  part of the money goes towards taxes."

A specific location in Connecticut for the company hasn't been decided, but once built, the facility will employ about 300 workers.

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