Christie Reaches Deal With Amazon to Collect Sales Tax on NJ Purchases
After reaching a deal with Gov. Chris Christie, Amazon will be making state residents pay them 7 percent on their purchases
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If you are a New Jersey resident who buys stuff from Amazon without paying sales tax, those days are about to come to an end.
Gov. Chris Christie has reached an agreement with Amazon, the giant online retailer, that it will begin collecting the 7 percent NJ sales tax on items delivered to state residents starting in 2013.
The deal was announced at a joint press conference given by Christie and Amazon executive Paul Meisner, the Wall Street Journal reported.
The tradeoff for Amazon buyers in New Jersey is that the company said they'd build two new warehouses in the state at the same time tax collection begins, in July of next year. That will create construction jobs and as many as 1,500 warehouse jobs for state residents.
There was no mention about where the warehouses would be located.
The Amazon sales tax collection is estimated to bring in $30 to $40 million, but it's a bittersweet development.
"The good thing is that there will be construction and permanent jobs created. The bad thing is that they'll be charging sales tax," State Senator Joseph Vitale (D-19) said.
Vitale said he understands how it could be a burden to state residents who will now join the 13 other states where Amazon made deals to collect sales tax.
"It's difficult to support additional taxes, but it's not a new tax. It's consistent with the law that has been around for all these years," Vitale said, referring to the state use law that requires New Jerseyans to report and pay in-state sales tax on out-of-state purchases, including Internet and mail order purchases.
Despite the state law, few people actually remit the tax themselves.
"It is what it is. I'm not happy about it," Vitale said about the potential taxes on N.J. residents.
"In the long run, though, it'll work out for anyone. It's a long term equation. They'll pay property taxes, it's a free market thing," he said. "It's a little convoluted, but it works in the long run."
In addition to collecting sales tax in New Jersey, Amazon will be eligible for Economic Development Authority (EDA) tax incentives to build in the state. The deal announced yesterday is contingent on Amazon receiving tax incentives to finance construction, Philly.com reported.
A spokesman for Christie didn't think that the taxpayer-subsidized financial breaks were necessarily part of the Amazon deal.
"They can apply to the EDA for incentives like any other business," said Sean Conner, spokesman for the governor's office.
John Balzer
3:46 pm on Saturday, June 2, 2012
No one could ever accuse Christie of not being energetic. As near as I can
tell, the tax issue has about a 50-50 public approval. Such is not the case for
Prudential which is attempting to rip-off NJ for a quarter of a billion dollars in
tax relief to build a new corporate mansion that by most accounts will leave
Newark and then NJ in economic uncertainty. Here, it would seem that there
is a majority of dissatisfaction over this dirty deal Prudential isn't even qualified
to receive. Christie has only scant days to veto the dreaded thing but will he? It
will take someone strong to stand up to Prudential. If it were put to a vote, I'm
sure the people would reject it but it remains to be seen if the will of Christie
will be the same as the will of the people or whether it will be big
business/government corruption as usual in NJ.
ballyjduf
8:47 am on Sunday, June 3, 2012
If he's so energetic why is he 200lbs overweight , what kind of example is he sending to the young people on NJ
THOMAS M
11:24 am on Sunday, June 3, 2012
Why do people care what he looks like, if he want to eat that's his business. Start focusing on the problems in this state instead of caring what the hell people eat, get a life. If you don't like the high taxes get the hell out of New Jersey, it's not going to change, get over it. The guy is trying to fix the problems there are to many people like State Workers, County Workers, Teachers that want free Health Insurance, get a life. My wife pays about almost $60.00 a week for Health Insurance and that's just for her I am not even on the policy because we can't afford it so why should you people get it free, screw you. I am glad we finally got somebody in there that stands up to you people and now your going to pay. Everybody else pays why not you, if you have sick days coming that's fine at the end of the year you don't use them you lose them, that's how my jobs worked.