Amazon to begin collecting Arizona sales taxes - MyFoxAustin.com | KTBC Fox 7 | News, Weather, Sports

Amazon to begin collecting Arizona sales taxes

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PHOENIX (AP) - Online retailer Amazon says it has agreed to settle a sales tax dispute with the state of Arizona and will begin collecting the state's 6.6% tax on product sales in the state on Feb. 1. Tax on digital sales will be collected 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 sales 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.

Gov. Jan Brewer's spokesman says she's pleased with the settlement.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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