HARTFORD, Conn. (AP) — Connecticut officials say Amazon has agreed to collect Connecticut’s sales tax, ending a dispute over the tax that the online retailer had refused to charge its customers.
Gov. Dannel P. Malloy said Monday that Amazon also promised to spend $50 million to build a facility at an unspecified site and create hundreds of jobs.
Under federal law, out-of-state retailers may not be required to collect tax on sales in Connecticut. Consumers must pay state use tax or face penalties.
Amazon will begin collecting the 6.35 percent tax on Nov. 1 and hand the money over to the state.
Amazon previously insisted it is not obligated to abide by the state’s Internet tax law because it does not have a physical presence in Connecticut.