Businesses happy with Amazon tax deal

AMHERST, Mass. (WWLP) - Governor Deval Patrick has worked out a sales tax deal and a timeline with Amazon to begin collecting revenue from the world’s largest online retailer. It is a deal that had been in the works for months, and one that some small business owners are happy to finally see in place.

Because Amazon did not have a physical facility in the state, it wasn't required to collect or remit sales tax.  Efforts to change that increased after small businesses noticed the online seller was squeezing out the competition. 

One of those businesses is the Food for Thought Bookstore in Amherst. Co-owner Mitch Gaslin says the change will help level the playing field.

“We've all been working on this for a long time, advocating for it. We are part of a couple of trade associations with other independent bookstores that have worked on this issue in other states around the country. So we are glad it's finally coming to Massachusetts,” Gaslin said.

As part of the deal announcement, Amazon also introduced plans to bring hundreds of high tech jobs to Massachusetts.

The seller will start collecting tax on November 1,2013.