Brick-and-mortar merchants gain equal footing with Amazon in NJ
Amazon, one the largest ecommerce internet retailers in the world, has reached an agreement with the state of New Jersey to begin collecting sales tax from residents who make purchases on the website by 2013. This helps local retailers gain equal footing with the ecommerce giant as consumers now have less incentive to purchase from Amazon.
On July 1, 2013, Amazon will begin taxing purchases made by New Jersey residents. The company will also build two warehouses in the state to expand distribution operations. Amazon has similar deals in place with other states, including Virginia, Indiana and Tennessee.
"I’m pleased Amazon is committed to helping New Jersey grow and create quality jobs," Governor Chris Christie said, as quoted by Internet Retailer. The new distribution centers are slated to create upward of 1,500 full-time jobs and will cost $130 million to build.
Many retail merchants have found Amazon's practice of not charging state taxes to shoppers to be unfair, claiming it gives the ecommerce retailer an unfair advantage at a time when many brick-and-mortar businesses are struggling.
