Online sales giant Amazon has agreed to start collecting a 7 percent tax on Mississippi sales and returning it to the state, Department of Revenue Commissioner Herb Frierson said Tuesday.
The move comes as Mississippi lawmakers prepare to consider passing laws and enjoining Alabama and others in litigation over online sales taxes. Amazon will begin collecting what is technically a “use” tax for Mississippi on Feb. 1.
Frierson said Amazon is by far the largest online seller in Mississippi. He said he can’t divulge Amazon’s estimate of how much the tax will bring in for Mississippi, but that it’s “south of $30 million a year, and north of $15 million.”
“It will be a big help for (the 2018 fiscal year budget),” Frierson said. “It won’t solve all our problems, but it will be a help.”