ALBUQUERQUE, N.M. (KRQE) – One of the last states with tax-free shopping on Amazon is New Mexico, but those days are now numbered.
The state announced Monday that the online retail giant will collect sales taxes starting April 1 at a rate of 5.125 percent.
It has the potential to generate tens of millions of dollars in revenue for the state annually, according to the New Mexico Department of Tax and Revenue.
“That just shows you how many people buy off Amazon,” said Mona Ghattas, owner of Duran’s Central Pharmacy, which has been in operation for 75 years.
“I think it’s a good thing for the state because it’ll generate a lot of revenue for them,” she said.
Ghattas explained that competition from online shopping has been tough.
“It’s very hard. It’s very hard. I try really hard to promote shopping in our local community, and I try very hard to shop at local businesses whenever I can.”
Albuquerque resident Aryn Seiler said, “I buy books on Amazon. Sometimes I buy unusual sorts of ingredients for making bread. It’s hard to buy here.”
“They should be taxing what I’m buying on Amazon. I think you should be taxed on purchases in a state that taxes purchases,” she said.
Some of the revenue will go into the state’s general fund. The rest will be allocated to the cities where the item was purchased.
At the Roundhouse, lawmakers are also considering legislation on taxing online purchases.