Starting next November, online retailer Amazon (NASDAQ:AMZN) will collect sales tax from residents of Massachusetts.
The move is the latest in an ongoing struggle between Amazon, brick-and-mortar retailers and state governments, The Washington Post reports. By selling without sales tax, Amazon is more attractive than local stores. Plus, states don’t receive the revenue that the sales could bring.
Current estimates say that Massachusetts loses $268 million in sales tax revenue from online and catalog sales annually. The state expects the agreement with Amazon to bring it tens of millions of dollars each year.
Amazon has made similar agreements with other states. The company is being granted permission to open warehouses for faster shipping in the states in return.
Here are the states from which Amazon collects sales tax:
- New York
- North Dakota