Amazon.com has struck a deal with the state of New Jersey to open two fulfillment distribution centers in the Garden State and to begin charging sales taxes to New Jersey residents by July 1, 2013.
New Jersey Governor Chris Christie announced the deal Wednesday, saying the new distribution centers would generate at least $130 million in capital investment in the state and create over 1,500 full-time jobs, along with thousands of temporary, seasonal and construction jobs. The investment commitment is contingent on Amazon receiving economic development incentives from the state.
“In yet another positive sign in our state’s economic and job growth, I’m pleased Amazon is committed to helping New Jersey grow and create quality jobs,” Christie said in a statement. “After months of hard work and collaboration, Amazon has joined the long list of companies that recognize New Jersey’s economic and business climate is improving. We’ve created an atmosphere of job creation, growth and investment, which is why we have taken another important step toward placing quality, good-paying job opportunities within reach of our families.”
According to an agreement forged after months of negotiation between Amazon and the New Jersey Division of Taxation, the company will voluntarily begin to collect and remit New Jersey sales tax by July 1, 2013, or as of the effective date of federal legislation concerning state sales tax collection from out-of-state retailers, whichever is earlier. Several bills have been introduced in Congress to collect sales taxes from online retailers, including the Main Street Fairness Act and the Marketplace Fairness Act, which both rely upon the Streamlined Sales and Use Tax Agreement that is in use by 24 states (see Congress Introduces Bill to Collect Online Sales Taxes and Senators Introduce Online Sales Tax Bill).
New Jersey residents will no longer be required to track and report on the use tax owed on their online purchases from Amazon, or to estimate it on their tax returns, and the state will receive the sales tax it is due to fund programs and services for its residents.
Amazon reached a similar deal with the state of Nevada earlier this month, with Texas last month and with California last September.
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