SALT Report 3894 – According to an Amazon spokesperson, beginning on February 1, 2017, Amazon will begin to voluntarily collect the 7% sales tax in Rhode Island. According to Amazon’s website, the company already collects sales tax for purchases through 33 states, including Massachusetts and Connecticut. Sales tax is also collected from shoppers in District of Columbia.
Exactly how much tax revenue Rhode Island will receive as a result of Amazon sales isn’t clear.
For perspective, in 2013 when Massachusetts began receiving sales tax money from Amazon, the Massachusetts Department of Revenue estimated approximately $35 million would come into the state over the course of that fiscal year. Since then, online shopping has become even more popular.
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