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And then there were three. Amazon.com Inc. will begin collecting New Mexico’s gross receipts tax on online purchases beginning in April, state officials said.
That leaves just three states—Hawaii, Idaho and Maine—with state sales taxes where the e-retail giant doesn’t have an agreement to collect.
The New Mexico gross receipts tax rate varies throughout the state from 5.125 percent to 8.6875 percent, according to the New Mexico Taxation and Revenue Department’s website.
The move is likely to result in “tens of millions” of dollars in revenue added to the state’s coffers, Ben Cloutier, spokesman for the department, said in a March 6 written statement.
It comes on the heels of legislation ( S.B. 264) that calls for expansion of existing rules to permit collection of the state’s gross receipts tax on purchases made over the internet. New Mexico is one of at least 25 states considering legislation this year aimed at capturing more taxes from the growing e-commerce market.
The co-sponsor of that legislation, Rep. Carl Trujillo (D), expressed optimism to Bloomberg BNA March 7 that Amazon’s action would lead other online retailers to collect and remit taxes voluntarily. Amazon’s agreement helps level the playing field between large national retailers and smaller local ones, he said.
An Amazon spokesman wasn’t immediately available for comment.
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Text of S.B. 264 is at http://src.bna.com/mqM.
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