Maryland residents are about to learn that not all purchases from Amazon.com are free from sales tax. Amazon has announced that it will build a “fulfillment center” in Baltimore which it hopes to open in 2014. Once it has done so all purchases from Amazon will be subject to the Maryland state sales tax of 6%, even if made over the internet and delivered straight to your home or business.
Each year various members of Congress introduce bills to establish a federal sales tax for internet purchases, but so far none have passed. However, many states like Maryland and Virginia will tax internet sales where the seller has a physical presence in that state. So while Amazon is bringing hundreds of jobs to Maryland, it does come at a cost to Maryland consumers.