Amazon to collect sales tax—and build two DCs—in New Jersey

New York -- Amazon.com Inc. will begin collecting 7% sales tax from New Jersey residents starting in July 2013. The online giant announced the agreenment on Wednesday at the Statehouse in Trenton, N.J. It also announced it will build two distribution centers in New Jersey.



Each warehouse will measure about one million square feet. The centers will create a projected 1,500 full-time jobs and would enable the state of New Jersey to collect an estimated $30 to $40 million in tax revenue.

Amazon has been involved in talks with N.J. state officials for months to open the facilities in New Jersey, but the decision was delayed while the company sought a two-year sales tax holiday.



A bill to let Amazon hold off on charging the sales tax was approved in the Assembly but then stalled in the Senate. Sponsors of the measure said on Wednesday the effort was now moot, The Newark-Star Ledger reported.