Market Overview

Amazon Boosts New Jersey's Tax Revenue by $40 Million

As much of $40 million in additional tax revenue will be collected in New Jersey starting in the summer of 2013.

And it's all thanks to Amazon (NASDAQ: AMZN), which, according to the Wall Street Journal, will begin collecting 7% sales tax on purchases made in the state starting in July of next year.

This coincides with the launch of Amazon's two new distribution warehouses, which could provide New Jersey with thousands of construction jobs and an estimated 1,500 permanent jobs in the warehouses once construction has been completed.

As a result of the new sales tax collected from Amazon purchases, New Jersey officials estimate that the online retailer will bring an additional $30 million to $40 million to the state every year. Amazon is investing $130 million to build the new warehouses, but the Wall Street Journal said that some of that money will be recouped from grants provided by the state.

In the past, Amazon sought sales tax exemptions by agreeing to build what the Wall Street Journal refers to as "job-creating distribution centers" in California, Tennessee, Indiana and South Carolina.

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Posted-In: Amazon New Jersey Wall Street JournalNews Success Stories Tech Best of Benzinga

 

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