For Immediate Release - December 11, 2012

PATRICK-MURRAY ADMINISTRATION ANNOUNCES AGREEMENT WITH AMAZON

BOSTON – Tuesday, December 11, 2012 – Governor Deval Patrick and Amazon today announced that Amazon will collect and remit sales tax in Massachusetts starting next fall, and that they will work together toward enactment of federal legislation to resolve the sales tax issue by creating an equitable and simple framework for collecting sales taxes. Amazon also plans to create hundreds of high tech jobs in Massachusetts in coming years.

"I value the contributions large and small employers alike make to Massachusetts' economic vitality, and this agreement captures that," said Governor Patrick. "We are thankful Amazon was willing to come to the table and we will continue our conversations with them about creating jobs here. This agreement is a win for all sides, and I am pleased it promises to generate millions in long-term revenue for the Commonwealth.” 

Governor Patrick reiterated his support for the federal legislation to resolve the sales tax issue and encouraged Congress to act on the measure.

"We appreciate Governor Patrick’s commitment to Massachusetts jobs and investment and his support for legislation now before Congress that would provide a final resolution to the sales tax issue,” said Paul Misener, Amazon vice president of global public policy. “We look forward to creating hundreds of high tech jobs in Massachusetts and continuing to work with Governor Patrick, state leaders, retailers and Congress to pass federal legislation permitting interstate sales tax collection.  Federal legislation is the only way to level the playing field for all sellers, the only way for states to obtain more than a fraction of the sales tax revenue that is already owed, and the only way to fully protect states’ rights."

"Governor Patrick and I value the strength of small businesses across the Commonwealth, and this agreement is an important step in keeping the Massachusetts business climate competitive while generating important revenue for critical services like education and public safety,” said Lieutenant Governor Timothy Murray.

“I appreciate Amazon’s willingness to work with us to reach an agreement that will benefit both the Commonwealth’s businesses and Massachusetts taxpayers,” said Secretary of Administration and Finance Jay Gonzalez. “However, Massachusetts and other states will receive the majority of the revenue owed only when Congress passes federal legislation, and we encourage Congress to act."

The Patrick-Murray Administration continues to support federal legislation allowing states to require remote sellers, including internet retailers, to collect and remit sales tax.  Legislation currently before Congress would create a simple and equitable framework for sales tax collection to protect states’ rights, allow states to collect all of the revenue owed, and resolve the sales tax issue for states, consumers and retailers. 

The agreement will take effect on November 1, 2013, in time for the next holiday season.

About Amazon.com

Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com, Inc. seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon's developer customers with access to in-the-cloud infrastructure services based on Amazon's own back-end technology platform, which developers can use to enable virtually any type of business. Kindle Paperwhite is the most-advanced e-reader ever constructed with 62% more pixels and 25% increased contrast, a patented built-in front light for reading in all lighting conditions, extra-long battery life, and a thin and light design. The new latest generation Kindle, the lightest and smallest Kindle, now features new, improved fonts and faster page turns. Kindle Fire HD features a stunning custom high-definition display, exclusive Dolby audio with dual stereo speakers, high-end, laptop-grade Wi-Fi with dual-band support, dual-antennas and MIMO for faster streaming and downloads, enough storage for HD content, and the latest generation processor and graphics engine-and it is available in two display sizes-7" and 8.9". The large-screen Kindle Fire HD is also available with 4G wireless, and comes with a groundbreaking $49.99 introductory 4G LTE data package.  The all-new Kindle Fire features a 20% faster processor, 40% faster performance, twice the memory, and longer battery life.

Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn, www.amazon.it, www.amazon.es and www.amazon.com.br. As used herein, "Amazon.com," "we," "our" and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, inventory, government regulation and taxation, payments and fraud. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

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