Starting November 1st, the world’s biggest internet retailer will be tacking 6.25% to your purchases.
It will only help smaller businesses Manny’s TV and Appliances. “It’ll help us because basically, it’ll level the playing field. So if we’re a certain price, and Amazon’s the same price, you’ll have to pay the tax now no matter what. So I think you’ll be more able now to speak to a local dealer, and you’ll be able to talk to somebody, if you have any issues, there will be someone you can talk to,” Sales Associate David Lunden said.
The deal was inked last December, after Amazon made a collection agreement with the state. “Amazon has what’s called a physical presence now in Massachusetts because they acquired a company up north of Boston that does software development for them, so, we don’t have in this country a value added national tax. It goes state by state. The only way they can add the tax is if they can prove there’s a physical company within the state doing business,” said John Rogers, Economic Professor at American International College.
Rogers hasn’t heard very many people talking about it, probably because it just seemed inevitable. “If you think about it, it is a competitive business, but it’s also about getting the best price. If you think about adding 6.25%, that could be your profit margin on a lot of items, so it is a big thing for the company. I think what they’re going to do is get concessions from the state, tax advantages,” Rogers added.
If you were hoping to save a few more dollars by using free Super Saver Shipping, you now have to spend at least $35 instead of $25.
The move is expected to bring $45 million to the state.