Online retail giant Amazon.com made two major Connecticut announcements Monday, including plans to invest $50 million in a brick-and-mortar site in the state. The company also said it will begin to collect sales tax revenue from online shoppers in Connecticut, following years of contentious debate on the issue.
Gov. Dannel P. Malloy announced Amazon’s plans during an early morning press conference at the State Capitol.
In a written announcement Malloy said Amazon will invest $50 million in Connecticut to add new jobs and build a facility somewhere in the state. No further details, including where and what type of facility is getting built were provided in the written announcement.
Meanwhile, Malloy said Amazon will also begin collecting a sales tax in the state, another significant development following years of controversy over the issue.
Under current federal law, out-of-state retailers can’t be required to collect tax on sales to Connecticut, leaving consumers with the burden of paying state use tax, which rarely happens leaving the state without that tax revenue.
In 2011, state lawmakers tried to bypass the federal law by passing an “Amazon” tax that required all online retailers to pay sales taxes to the state. But the measure proved futile, and the state has been unable to collect revenue from it.
Now, beginning Nov.1, Amazon will start collecting and remitting state sales tax, Malloy said Monday.
