Amazon seeks sales tax deal in New Jersey

February 17, 2012 by  

The online retailer is still seeking a tax deal from New Jersey lawmakers. In exchange for the deal Amazon promises to bring two warehouses to the region. This will result in more jobs in the state.

This move will have some implications for Amazon customers based in the state. Currently, New Jersey residents do not have to pay sales tax on Amazon purchases. This is because Amazon maintains that it does not have a physical presence in the state. If the deal goes ahead, the state will be able to collect sales tax from residents all over the state including smaller townships such as Newark.

The deal is being strongly opposed by groups who are lobbying for equal sales tax rules for online retailers. Over the past few decades the term “print is a dying medium” has been spoken all over the world. This is because people can get information for free online. Those who prefer the feel of real-life books can get them much cheaper online than offline. This is because online stores do not have the same expenses as offline stores. As a result, sales at offline stores have significantly dropped.

Instead of vilifying online retailers, offline stores should consider promoting the positives of shopping in person. For example a store with excellent customer service and a cafe could use printing services to create flyers. These flyers could state book and coffee deals that consumers can get by showing up at the store physically. In order to compete with online stores, offline retailers need to be aggressive.