PORTLAND, Maine (AP) — Amazon said it will begin collecting sales tax on purchases shipped to Maine addresses next month.
The online retailer has been working in recent months to reach agreements in a handful of remaining states where it doesn’t collect sales taxes.
The agreement in Maine, first reported by WMTW-TV, was confirmed by an Amazon spokeswoman on Monday. The spokeswoman declined to comment further.
The decision will help level the playing field for Maine retailers that collect sales taxes and will increase revenue available to Republican Gov. Paul LePage and lawmakers to reduce income taxes, said Commissioner George Gervais of the Maine Department of Economic and Community Development.
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“Maine businesses can go toe to toe with the very best out-of-state companies, provided they are competing on an equal playing field,” he said.
The collection of a 5.5 percent sales tax on items shipped to Maine begins April 1. Seattle-based Amazon.com also will begin collecting sales taxes in Hawaii, Idaho and New Mexico next month.