BOSTON (FOX 25 / MyFoxBoston.com) - Gov. Deval Patrick has announced that Amazon.com will begin collecting Massachusetts sales tax in fall 2013.
Amazon currently collects sales tax in California, Kansas, Kentucky, New York, North Dakota, Pennsylvania, Texas and Washington.
In a release sent Tuesday morning, Patrick also said the online retail giant plans to create hundreds of high-tech jobs in Massachusetts in the coming years.
"I value the contributions large and small employers alike make to Massachusetts' economic vitality, and this agreement captures that," said Patrick. "We are thankful Amazon was willing to come to the table and we will continue our conversations with them about creating jobs here."
Both Patrick and Amazon vice president of global public policy Paul Misener, said they're also urging Congress to pass federal legislation that would permit interstate tax collection across the board.
Amazon vice president of global public policy Paul Misener said the company is urging Congress to come to what he called a "final resolution to the sales tax issue."
"Federal legislation is the only way to level the playing field for all sellers, the only way for states to obtain more than a fraction of the sales tax revenue that is already owed, and the only way to fully protect states' rights," he said in a statement.
The agreement will take effect on Nov. 1, 2013.
"It's a very big win for Main Street," said Jon Hurst, president of the Retailer Association of Massachusetts. "Small merchants will compete price-wise and service-wise. What they cannot accept is a government-imposed advantage."
The deal in Massachusetts is similar to others Amazon has worked out with states across the country, paving the way to start opening warehouses and offering faster shipping in areas where tax disputes had previously prevented it from putting down roots. Misener said Tuesday that Amazon plans to add hundreds of high tech jobs in Massachusetts.
"We are thankful Amazon was willing to come to the table," Patrick said in a statement. "This agreement is a win for all sides."
The Associated Press contributed to this report.