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SALT LAKE CITY (AP) — A negotiated deal will allow Amazon.com to keep 1.31 percent of the Utah sales taxes it will begin collecting from its Utah customers in January.
The Deseret News (https://goo.gl/lbSZ14 ) reports that the deal does not include an incentive permitted under state law under which Amazon could have kept 18 percent of the revenue.
State Tax Commission Chairman John Valentine says Utah was able to reach an agreement with Amazon to receive the standard 1.31 percent discount that compensates vendors for costs of collecting taxes.
Utah officials say the state loses about $200 million a year from online retailers who don't collect sales tax from customers and forward them to the state.
Tax Commission spokesman Charlie Roberts says Amazon is the first online company to sign a voluntary compliance agreement.
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