Online companies to charge sales tax by summer

This will go into effect in July

CHICOPEE, Mass. (WWLP) – Some online retailers, will soon start collecting sales taxes in Massachusetts.

As more people turn to the internet to do their shopping, a new directive issued by the state’s Department of Revenue, will require online retailers to collect the same 6.25 percent sales tax charged by brick and mortar stores in Massachusetts.

According to the National Conference of State Legislatures, states have lost billions of dollars in uncollected taxes to purchases made online or via catalogs.

The owner of Jim Buddy’s, a vape shop in Chicopee, told 22News the new requirement could encourage more people to do their shopping in person.

“It effects how people purchase,” Jim Robinson said. “They’re looking to money wherever they can and every little bit, if you can get free shipping here or no sales tax here it definitely effects your bottom line and where you’re going to finally make that purchase.”

Online companies that sell more than $500,000 a year in Massachusetts, will be required to charge the sales tax, starting July 1.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s