Taxes

If you live in the state of Maryland and purchase something from Amazon, an extra six percent will be added to your purchase price and funneled to Maryland in the form of a sales tax. This change goes into effect beginning today.

Until now, Amazon did not collect Maryland sales tax because they did not have a physical presence in the state. That’s about to change. Amazon is in the process of converting an old General Motors plant in Baltimore into one of its massive distribution centers. The new facility is not scheduled to open until next spring, but they will start collecting Maryland sales tax from Maryland residents beginning today.

I wonder how much taxes Amazon is paying to state and local governments for its new facility in Baltimore. Usually, when a business like Amazon comes into a location, it’s showered with tax incentives intended to attract them into establishing a presence. The idea is that they will hire lots of people who will then in turn pay taxes and spend their paychecks, thus stimulating the economy.

When I moved here to Maryland in 1994, twenty years ago, it was to work in a new gigantic Wal-Mart photo finishing lab that was being constructed in nearby Williamsport. The state and county essentially gave the land to Wal-Mart to build the facility. They also provided tax incentives for the next twenty years. After a few years, Wal-Mart sold all their large photo labs to Fujicolor. The lab closed in 2008, resulting in 125 people losing their job.

Personally I hate that I will now have to pay Maryland six percent of everything I buy from Amazon. I feel like they’ve done nothing to deserve it. I also feel like I pay Maryland enough without having to also pay a tax for the stuff I buy from Amazon. Oh well, what can I do about it, join the TEA Party?

I don’t think so. I’d rather just pay the stupid six percent tax.