Amazon sales tax could raise $30 million a year for Wisconsin [The Wisconsin State Journal]
(Wisconsin State Journal (Madison, WI) Via Acquire Media NewsEdge) Oct. 11--Wisconsin could reap $30 million per year in new sales tax from online retailer Amazon.com, the Department of Revenue said Friday.
The company has told the department that it will register with Wisconsin and obtain a Wisconsin seller's permit by Nov. 1, when it will begin collecting sales tax from state residents who make purchases on Amazon.com.
The company is collecting taxes because of plans to build a distribution center in Kenosha, DOR spokeswoman Laurel Patrick said.
The $30 million figure was determined using research based on publicly available information, Patrick said.
The additional revenue is part of the funding for a $100 million property tax reduction package announced by Gov. Scott Walker and legislative leaders Thursday, spokesman Tom Evenson said.
The property tax relief is over two years, including $40 million next year and $60 million in 2015. At Thursday's news conference, officials said the funding would come from higher-than-expected tax collections but didn't mention the Amazon revenue.
The Kenosha City Council recently approved $17 million in public financing to bring the $250 million project to Wisconsin near Interstate 94. The center is expected to employ 1,100 workers.
The Wisconsin Economic Development Corp. is not discussing the project yet, spokesman Mark Maley said.
"We can't comment on any potential or pending deals until an agreement is signed," Maley said. "Not sure what the timetable is yet on this."
An Amazon spokesperson did not immediately respond to a request for comment.
Seattle-based Amazon, the world's largest online retailer, currently collects a sales tax in 13 states -- Arizona, California, Georgia, Kansas, Kentucky, New Jersey, New York, North Dakota, Pennsylvania, Texas, Virginia, Washington and West Virginia.
The state collected nearly $4.3 billion in sales and use taxes in 2011-12.
(c)2013 The Wisconsin State Journal (Madison, Wis.)
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