image description To Start Collecting Sales Tax On Maryland Orders

October 25th, 2013 by WCBC Radio

Maryland Comptroller Peter Franchot says'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. He does say extending the sales tax to online retailers with a physical structure in Maryland is fair, since "brick and mortar" retailers already collect the tax. Franchot says that he understands some consumers would be frustrated with paying the sales tax on their online purchases…


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