BOSTON (AP) — Online retailer Amazon.com has reached a deal with Massachusetts to start collecting sales tax from Bay State residents.
The deal that kicks in next Nov. 1 was announced by Gov. Deval Patrick on Tuesday.
The announcement said the state and Amazon will work together toward enactment of federal legislation to resolve the issue of taxes for online sales, and added that Amazon plans to add hundreds of jobs in Massachusetts.
Patrick says the deal is a "win for all sides."
Paul Misener, Amazon's vice president of global public policy, says the company looks forward to working with the state for a resolution to the issue.
The state has been pressured by bricks and mortar retailers who say online companies have an unfair advantage.
Massachusetts has a 6.25 percent sales tax.