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Amazon Agrees to Pay Sales Tax to New Jersey, Christie Says

New Jersey stands to see as much as $40 million a year in sales-tax revenue from Amazon (AMZN).com Inc., the biggest online retailer, Governor Chris Christie said.

A deal the Republican governor disclosed today will bring to New Jersey $130 million in investments and 1,500 full-time jobs. Amazon will start collecting the 7 percent tax July 1, 2013, Christie said at a Trenton news briefing. Work on two new warehouses in the state may begin next year, he said.

“Today’s announcement marks a first step toward a long- term relationship with Amazon,” Christie, 49, told reporters. “With this agreement, Amazon is stepping up and making a real commitment to our state and to our people.”

The accord is the latest example of Amazon reaching sales tax deals with states: This month a similar arrangement was announced with Nevada and last month the company agreed to begin collecting sales tax in Texas. Agreements with the states may presage federal legislation that would simplify the taxation of online sales, said Christie and Paul Misener, vice president of global public policy for the Seattle-based company.

In New Jersey, the two “fulfillment centers” each will be more than 1 million square feet (92,900 square meters), big enough to fit three aircraft carriers, and will require workers with basic computer skills, Misener said. He said Amazon has a “history of growing in states that welcome us.”

The Arlington, Virginia-based Retail Industry Leaders Association said in a statement that the tax deal will be fairer for traditional stores.

To contact the reporter on this story: Terrence Dopp in Trenton at tdopp@bloomberg.net

To contact the editor responsible for this story: Stephen Merelman at smerelman@bloomberg.net

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