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Amazon agrees to collect Arizona sales taxes
Online retailer Amazon has agreed to settle a sales tax dispute with the state of Arizona and will begin collecting the state’s 6.6 percent tax on product sales in the state on Feb. 1 and on digital sales beginning in July.
Amazon disclosed the settlement in a note contained in its quarterly earnings report filed with securities regulators on Friday.
Arizona sent the Seattle-based company a $53 million bill in November 2011 for taxes and interest on sales that it did not collect between March 2006 and Jan. 1, 2011. The company disputed that it was required to collect the tax on behalf of the state and cities.
Its filing said it will pay an undisclosed but “immaterial” amount to settle that claim as part of a settlement it says it signed with the state last month.
A spokesman for Gov. Jan Brewer, Matthew Benson, said Saturday that she was pleased with the settlement.
“This agreement allows the State of Arizona to settle its dispute with Amazon without resorting to litigation, while securing partial payment and establishing that Amazon will collect and remit this tax going forward,” Benson said in an email to The Associated Press. “Amazon is a quality employer that has invested more than $150 million in Arizona and created thousands of good jobs, and Governor Brewer is proud to have them here.”