Amazon to begin collecting Arizona sales taxes

Posted at: 10/27/2012 12:59 PM
By: The Associated Press

PHOENIX (AP) - Online retailer Amazon says it has agreed to settle a sales tax dispute with the state of Arizona and will begin collecting the state's 6.6 percent tax on product sales in the state on Feb. 1.

Tax on digital sales will be collected beginning in July. Amazon disclosed the settlement in a note contained in its quarterly earnings report filed with securities regulators on Friday.

Arizona sent the Seattle-based company a $53 million bill in November 2011 for sales taxes and interest on sales that it did not collect between March 2006 and Jan. 1, 2011.

The company disputed that it was required to collect the tax on behalf of the state and cities. Gov. Jan Brewer's spokesman says tells the Arizona Republic she's pleased with the settlement.

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