Seattle—Amazon.com Inc. has agreed to begin collecting sales tax on online purchases by New Jersey residents in exchange for opening Amazon distribution warehouses in the state. The deal goes into effect in July 2013.
Amazon has battled moves by several states to tax online sales by out-of-state companies, charging that it would harm its legions of affiliated resellers. Most recently the company struck a deal with Texas that is similar to its arrangement with New Jersey, agreeing to increase its in-state presence, add jobs and collect sales tax on items sold to Texas residents.
The Direct Marketing Association has fought on behalf of Amazon and its affiliated resellers. This spring, DMA won an injunction against the director of the department of revenue in Colorado, blocking enforcement of a new law in the state that required out-of-state e-commerce businesses to report residents' purchases to the state so that it can collect sales tax.