Amazon will start collecting Connecticut’s 6.35% sales tax tomorrow, November 1st. In part, this effort was spurred by Connecticut’s insatiable appetite for new revenue, but traditional, land-based realtors have been demanding a level playing field and they think this will achieve that. They should think again.
Amazon’s giving up the sales tax battles across the country because it wants to move to same-day delivery, and the best way to do that is to establish warehouse / distribution centers in the same neighborhood as its customers. By December, 2014, just in time for the Christmas shopping season, it expects to have a 1,500,000 sq. ft. distribution center operating in Windsor. Once that happens, retailers with limited inventory and high prices will discover that the sales tax disadvantage was the least of their problems.