CHICOPEE, Mass. (WWLP) – Some online retailers, will soon start collecting sales taxes in Massachusetts.
As more people turn to the internet to do their shopping, a new directive issued by the state’s Department of Revenue, will require online retailers to collect the same 6.25 percent sales tax charged by brick and mortar stores in Massachusetts.
According to the National Conference of State Legislatures, states have lost billions of dollars in uncollected taxes to purchases made online or via catalogs.
The owner of Jim Buddy’s, a vape shop in Chicopee, told 22News the new requirement could encourage more people to do their shopping in person.
“It effects how people purchase,” Jim Robinson said. “They’re looking to money wherever they can and every little bit, if you can get free shipping here or no sales tax here it definitely effects your bottom line and where you’re going to finally make that purchase.”
Online companies that sell more than $500,000 a year in Massachusetts, will be required to charge the sales tax, starting July 1.