All online purchases being sent to New Mexico addresses from Amazon.com, Inc.(NASDAQ:AMZN) will attract a sales tax of not less than 7%. The New Mexico Department of Taxation and Revenue says that the tax, which will become applicable as from April will be inclusive of state and local rates.
The new measure comes at a time when New Mexico is fighting to fill a budget gap. While it is not clear yet, it seems like the lawmakers are on a mission to introduce rules that will have internet vendors remit taxes within physical appearance. Will this have an impact on the overall NASDAQ Stock?
It is in the interest of boosting revenue: Legislators claim
Amazon has been embracing tremendous growth in the recent years given that millions of people prefer online purchase. It is one of the online retailers that have been lead right from the beginning and has grown to enormous sizes over the years. The giant retailer has been collecting sales tax in many U.S. states with respect to pressure from state officials.
So is it likely that it is also bowing to pressure to add another U.S. state into its list? The answer to this is yet to be known. However, the president of the Santa Fe Chamber of Commerce, Simon Brackley quotes, “It will give much-needed revenue to the state and it will allow local retailers to compete fairly.”
The proposal to have internet companies collect taxes receives bipartisan support
Apparently, the new legislature, which Amazon has not responded to, comes at a time when the company is expanding its operations. This not only makes it subject to taxes in several states but it also shifts the legal basis that internet retailers have used to avoid tax in some states.
However, the measure has been well embraced by several republican lawmakers. They are of the feeling that it will place a fairer competition ground for small businesses. Hence don’t be surprised to see changes in the NASDAQ Stock of many businesses that may either gain or lose from the new measure. State officials are also convinced that the sales tax will help in the collection of millions in tax revenue.