FYI: Amazon to start collecting sales tax in CT tomorrow – Nov. 1

Just wanted to make a general public service announcement:

Amazon — the country’s largest online superstore — will begin collecting sales tax in Connecticut effective tomorrow – Nov. 1.

The purpose of this e-mail is simply to inform and not to say whether that policy is good or bad. One line of thinking is that it will help sales at local retailers. If you think of the “mega” electronics retailers we have left around here, they are Best Buy, PC Richard, and perhaps WalMart and Target. Will sales go up at those stores? Time will tell.

As part of a deal struck with the State of CT, Amazon will also be opening a warehouse here in the Windsor / Windsor Locks area. The goal is to provide quicker or in some cases same day delivery to CT residents. Amazon expects to employ 150 to 200 people. These types of jobs often pay $15 to $17 an hour. That is a living wage around here and I am glad the jobs are coming to our part of the world.

A few other notes about Amazon:
1) They have recently upped the minimum order to qualify for free shipping. It is $35.
2) However, many of my customers, myself included are Amazon Prime members. It is $80 a year ($40 for students) and it essentially functions like an ONLINE version of a BJ’s or Sams Club membership. You get free 2 day shipping on everything, no minimums, and access to Amazon’s library of 40,000 online videos (a la Netflix).

Typically when I buy electronics accessories needed for a client — I will choose Amazon or Best Buy (online order option only). Nothing will change for me with Amazon collecting sales tax in CT.