As Amazon Eyes NJ Warehouses, NJ Eyes Future Sales Tax Revenues
By David Madden
TRENTON, N.J. (CBS) -- The Internet mega-retailer Amazon.com is looking to set up shop in New Jersey -- a move that could mean big bucks to the state in the long term.
For Assembly majority leader Lou Greenwald, it's a matter of fairness. Right now, Amazon does not charge New Jersey residents sales tax for online purchases, because Amazon is not physically located in the state.
"Amazon is looking to come to New Jersey and create that nexus," Greenwald notes, "which would put a pin in the calendar and a date and time in which they would begin to pay that tax on all their sales."
Talks are centering on setting up a pair of warehouses. Greenwald sees them along interstates, probably close to New York and Philadelphia, which would create up to 1,500 jobs.
And once a negotiated grace period ends, that seven-percent sales tax would start being paid to Trenton, which could mean upwards of $200 million a year for the state.
