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Sales Tax Loophole

Monday, November 26, 2012

Governor: Amazon Should Start Collecting State Sales Tax

The Internet giant has been exempt from collecting sales taxes in Massachusetts but some say that changed when it bought a North Reading company this year.

The Patrick Administration is arguing that after Amazon, the huge online retailer, bought a Massachusetts company this year it is no longer exempt from collecting the state's 6.25 percent sales tax as soon as the 2013 holiday season. Under federal law, online retailers are not required to collect state sales taxes if they do not have a physical presence in the state, such as an office building or a store, the Boston Globe reported.  But Amazon bought North Reading company Kiva Systems this year, and is recruiting engineers for a Cambridge office, according to the Globe report. This, Patrick says, means it needs to start collecting the state sales tax in Massachusetts.  Amazon has faced similar pressure from other states and collects sales …

Monday, September 24, 2012

Local Mayors Urge Patrick to Force Amazon to Collect State Sales Tax

Mayors who are part of a state coalition argue giant online retailers are being allowed to avoid collecting millions in state sales tax, and that's unfair to local businesses that do collect, especially as the holiday shopping season approaches.

It's only fair -- that's the argument from advocates behind an effort to get giant online retailers, such as Amazon.com or Overstock.com, to collect the 6.25 percent state sales tax on purchases by Massachusetts customers. The Massachusetts Main Street Fairness Coalition (MMSFC), an organization made up of retailers, local elected officials, labor unions, trade and business associations and individuals, says these online retailers are exploiting a legal loophole that allows them to not charge sales taxes unless they have a physical presence in that particular state. It's a "huge advantage" local brick-and-mortar businesses -- the "lifeblood" of cities and towns -- can't compete with, the coalition argues. The coalition is led by Salem …

Saber Walsh

12:29 pm on Friday, October 12, 2012

It's time for an "intervention." We need to wean our politicians off the "find something new to tax!" trend and get them to start cutting the things that need to be cut (and put money back to where it needs to be put like schools/public safety) It didn't take Driscoll long to become a "tax addict," did it? Maybe if Salem got more revenue than tourism and parking tickets she wouldn't care as much…   more ›

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