An elaborated article about Amazon and NJ:
Overall, Amazon pays taxes in every state in which it operates. In New Jersey, the company has paid $170 million in state and local taxes since 1998, according to an analysis by the Institute on Taxation and Economic Policy.
However, Amazon has come under fire recently because the company has been able to avoid paying millions of dollars in taxes in New Jersey through the use of tax loopholes. In response, New Jersey Governor Phil Murphy announced in October that he planned to create a commission to study Amazon’s tax practices.
Given the controversy, it’s important to know how much Amazon pays in New Jersey. According to the ITP analysis, Amazon has paid an effective tax rate of just 2.4 percent in New Jersey since 1998. That’s lower than the state’s average tax rate of 3.
8 percent and well below the 9.5 percent rate Amazon paid in Virginia, its previous home state.
Despite the low tax rate, Amazon has nevertheless contributed significantly to the state’s tax coffers. In 2018, Amazon paid $157 million in state and local taxes in New Jersey, according to ITP.
That’s more than any other company in the state.
So, while Amazon has come under fire for its tax practices in New Jersey, the company has still paid a significant amount of taxes to the state over the past 18 years. The question now is whether or not New Jersey will be able to use this money to fund vital services like education and infrastructure.
