Amazon.com to start collecting New Mexico sales tax on April 1st, 2017
Amazon.com to start collecting New Mexico sales tax on April 1st, 2017
For years New Mexicans have enjoyed saving extra cash when ordering with online retail “King”, Amazon.com.
Starting April 1st, 2017, this will change.
House Bill 202 calls for New Mexico to tax sales on purchases for business without a physical presence in the state.
NM Taxation and Revenue Department spokesman, Ben Cloutier, believes the sales tax will be significant, likely in the tens of millions of dollars.
Huge budget deficits for years have left New Mexico looking for new ways to make revenue; this will be a step towards achieving that goal. The revenue will likely go into the state’s general fund and allocated to the cities where the online order was purchased.
What does this mean for New Mexico? As a small business owner, I hope it means buyers are more inclined with keeping their money in the local economy. Competing with massive online retail companies can be difficult and in many cases, impossible. With tax now being collected with online purchases, many local businesses have more of a fighting chance with consumers.
On the consumer side of things, we’re going to have to pay more for online purchases. Most people won’t be thrilled with the idea, but it was only a matter of time. Over the past few month, Amazon has voluntarily agreed to collect and remit in more than a dozen states. (Arkansas, Oklahoma, Wyoming, Mississippi, Missouri, Rhode Island, South Dakota, Vermont, Iowa, Louisiana, Nebraska, Utah, Alabama, and the District of Columbia)
Other online vendors are more likely to come, so get used to it, New Mexico!
Keep shopping locally; it’s always going to be the best thing for our cities and its citizens.
Now if only Amazon founder, Jeff Bezos would have started Amazon in is home state……..one can dream!
