Amazon to Collect Connecticut Sales Tax

State becomes latest to record tax from the online giant.

Dan Carroll
Dan Carroll
Feb 5, 2013 at 12:33PM
Technology and Telecom

Amazon (NASDAQ:AMZN) will begin to collect sales tax in the state of Connecticut, according to a press statement from the office of Connecticut Gov. Dannel Malloy. The online retailer will begin collecting the 6.35% tax Nov. 1, with the move expected to contribute around $8 million to state revenue in its first year and between $13 million and $15 million in the second.

According to the release, Amazon has also agreed to invest $50 million in Connecticut and to create hundreds of new full-time jobs in the state. Connecticut becomes the latest state to collect tax from the Internet giant, which already records such tax from customers in eight states. Customers in Virginia, Massachusetts, and New Jersey are slated to begin paying tax this year, with more states slated to join them in the future.

Malloy was quoted in the release as saying, "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."

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