Amazon to collect New Jersey sales tax

June 3, 2012 by  

The online retailer Amazon has agreed to collect 7% sales tax on all New Jersey purchases. Currently, NJ residents do not have to pay tax on Amazon purchases but the company will start charging this tax in July 2013.

Amazon has been in negotiations regarding sales taxes for several months. In exchange for a lowered or waived tax, they plan to bring thousands of jobs into the state by building a New Jersey-based warehouse.

The negotiations between Amazon and the state have been controversial. While arguments exist that Amazon should not have to charge these taxes, offline retailers may point out that Amazon can offer lower prices due to their tax breaks. These retailers may take encouragement from the possibility of Amazon increasing their prices, thereby perhaps persuading more customers to shop on the high street and in town centers.

In view of this, businesses who sell similar products to Amazon may want to market their sales and specials, which they could do by using printing services to promote their deals. Handing out flyers is an excellent way to let consumers in communities like Bloomfield know that the store offers competitive pricing.

Online shopping is popular because of its convenience and the assumption that prices will be lower. This is not always the case, especially since most online retailers will charge for the shipping of their products, and any price rise as a result of sales taxes is likely to deter some customers. Many retailers have found that advertising their prices and excellent customer service has boosted their sales figures.