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Sunday, October 27, 2013

Franchot Says Amazon.Com Will Close Sales Tax Gap

Maryland Comptroller Peter Franchot says Amazon.com's decision to open a distribution center on the site of a former GM plant in Baltimore will mean the online retailer will begin collecting the state's sales tax.

Franchot says, like many online retailers, Amazon purchases had been exempt from the state's 6% sales tax. However, now that the company will have a physical structure in Maryland the company says it will begin collecting the tax once the facility opens.

Franchot told WBAL News that, "a state like Maryland loses $170-million to $200-million a year in sales tax revenue," from online retailers that don't collect the sales tax.

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15 comments:

Anonymous said...

They should have visited the distribution center in PA, which has spurred ALOT of controversy.
Seems that there is no temp control in these facilities.
In the summertime, they have an ambulance in the parking lot on standby to take their employees that suffer from heat exhaustion to the hospital.
Insufficient breaks, they do not even offer free water to their peeps.
Its been an on going investigation to their employment practices.

Anonymous said...

Whaaaa. Don't work there if you don't like the conditions. It hot in the summer/cold in the winter if you are a roofer or farmer.

Anonymous said...

NOTE that this will cost MD TAXPAYERS $40,000 per job created... PLUS the 6% sales tax on anything we purchase.

Anonymous said...

NOT buying from them, unless I ship to my grandparents in DE. another company FALLING to the pressure!!!!!!!!!!!!!!!!!!!!

i bet AMAZON gets a free ride from STATE CORP BIZ tax, and now we pay the extra 6% on every purchase.

Anonymous said...

No big Deal! I shop else where.

Anonymous said...

9:58, really, go away. You are too stupid to be commenting in public.
Troll.
Roofers will start early to get out of the afternoon sun, so do road workers, etc. They take breaks, get water.
Why don't you google it first before you start spewing ignorance.
I guess the fact that OSHA, city and state are involved in the investigation to their employment practices means nothing.
You are truly a stupid xxx which gives the general population the impression that the other citizen that live here are as stupid as you. You're an insult your community.

Anonymous said...

Wow, the liberal/union wannabe gets upset when someone sides with the employer.

Anonymous said...

I get sick of this bozo talking about lost tax revenue. You didn't lose anything. How do you lose something you were not entitled to in the first place.

Anonymous said...

I stopped using amazon a while back, and haven't looked back. I have a one stop shop for everything I need online.

Anonymous said...

So the state of MD gives Amazon $40k per employee in tax credits. This means that we're essentially paying for Amazon's employees, in order to get the privilege of paying tax on their items for sale. Talk about a screw job!

At the minimum, Amazon's prices have to be 6% better now.

Anonymous said...

I will not be buying from Amazon any longer. As a matter of fact I will be closing my account in a few moments.

Anonymous said...

11:11 OSHA is a joke. Completely inept, and essentially just a blackmail thug group.

Anonymous said...


Amazon has been an OK place to shop for some items. No gripes about their service; think most stuff has been coming from DE.

But...in conjunction with their 40% increase in amount needed to get 'free' shipping (from $25 to $35 per order) I'm much less likely to use them unless they are the only source, which is generally not the case.

Earlier comments noted the expected 6% effective price increase due to paying OweMalley & crew (the tax does not figure into the $35 order min) and it's a lose-lose for consumers; a win for OweMalley; and a likely modest loss for Amazon unless they can find other products or customers to add.

Anonymous said...

I like Franchot's math. I didn't win the Lottery therefore I LOST a million dollars. Sounds like a good income tax strategy.

Anonymous said...

Peter, please tell us what you are spending our rain tax money on. Exactly what big giant machine is being built to take the rain off my roof and driveway and filtering it before it gets to my waterways? How much did this machine cost? Can I at least see the blueprints to see how it works? I'm paying my rain tax, yet it seems the rain is still running down my street and into the river. How could that happen?

I hear you want to be my next governor as well.