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Amazon Reaches Sales Tax Compromise

Starting next July, when New Jersey residents buy from the online giant,, they will be charged the state’s 7 percent sales taxes. The move is expected to bring in more than $30 million in revenues for the state.

Amazon plans to build two warehouse distribution centers in New Jersey that are expected to create 1,500 full-time jobs. When the online retailer divulged its plan it wanted to be exempt from the state sales tax regulations. The stance set up a showdown with in-state retailers, who argued Amazon would be getting an unfair advantage. Under the compromise announced by the governor’s office this week, the sales tax will kick in in 2013 and Amazon will also apply to participate in business incentive programs offered by the state Economic Development Authority.

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    The mission of Commerce and Industry Association is to be the leader in free enterprise advocacy for the purpose of fostering, through education, legislative vigilance and membership interaction, an economic climate that enhances business potential and makes New Jersey a better state in which to live, work and conduct business.

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