Amazon To Start Charging Sales Tax In Maryland Next Year | WAMU 88.5 - American University Radio

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Amazon To Start Charging Sales Tax In Maryland Next Year

Packages delivered to Maryland will soon include the state's 6 percent sales tax.
Aurelijus Valeisa: http://www.flickr.com/photos/95124659@N00/2279398155
Packages delivered to Maryland will soon include the state's 6 percent sales tax.

Maryland residents should enjoy tax-free online shopping at Amazon now, because next year they'll pay taxes for items bought from the online retailer.

On Tuesday, the online retailer announced plans to build a fulfillment center in Baltimore, bringing 1,000 full-time jobs to the city. Local lawmakers cheered the announcement, saying it will likely be a boon to the Baltimore economy.

"I'm thrilled that Amazon is joining our community of businesses that surround the Port of Baltimore," said Gov. Martin O'Malley. We know Amazon's decision was based on a solid business plan, and we look forward to working with them as they continue to expand here in Maryland."

But businesses with a physical footprint in the state are required to collect the state's 6 percent sales tax. So when the 1 million-square-foot fulfillment center is opened some time next year, Maryland residents will be charged more at checkout.

The same thing happened in Virginia in September, after Amazon opened two new distribution facilities in Chesterfield and Dinwiddie Counties. The additional tax revenues in the Commonwealth are expected to approach $24 million a year.

Amazon was already the subject of some grumbling on social media Tuesday, when the minimum purchase that qualified for free shipping was increased by $10.

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