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Amazon, Connecticut reach sales tax deal; Indiana wants to speed up collection

While you've been working on your individual income tax returns, lawmakers in a couple of states have been working on deals that will put more sales tax money into their treasuries.

No, Connecticut and Indiana aren't raising sales tax rates (yet).

They are refining plans to start collecting sales tax on Amazon online purchases.

This November, Amazon will begin collecting Connecticut's 6.35 percent sales tax on items sold to state residents.

As part of the deal, Amazon will invest $50 million over the next two years. Part of that investment is new fulfillment center in Connecticut, which should help Amazon reduce shipping times.

Expanding Amazon taxes: The Internet giant already adds sales taxes to purchases from online shoppers in California, Kansas, Kentucky, New York, North Dakota, Pennsylvania, Texas and Washington.

Shopping onlineThe Nov. 1 sale tax collection date is particularly welcome by Connecticut officials, who expect the online holiday shopping season to add $8 million in sales tax collections to state coffers this year. With the tax collection in place for all of 2014, Nutmeg State officials expect to rake in $13 million to $15 million.

Connecticut joins its neighbor to the north Massachusetts, which will see Amazon sales tax collection there also begin on Nov. 1.

New Jersey and Virginia shoppers also will face Amazon taxes this year. The Garden State collections begin on July 1. The Old Dominion sales tax on online sales will start Sept. 1.

Indiana, Nevada and Tennessee shoppers will pay sales tax on Amazon purchases starting in 2014, with South Carolina joining the tax collection group in 2016.

Earlier in Indiana: Or will Hoosier tax collectors have to wait until next year?

The Indiana House voted 79-to-18 this week to move the Amazon sales tax collection up six months, from Jan. 1, 2014, to this July 1.

The vote was prompted by brick-and-mortar stores that didn't want to go through another holiday sales season losing purchases to shoppers who avoid Indiana's 7 percent sales tax by buying Amazon goods.

The effort to speed up the online sales tax collection, however, is expected to face a tougher time in the Indiana Senate.

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