Amazon agrees to turn over third-party seller data to Mass

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This is good news and a time saver, as Massachusetts residents will not need to spend time each spring researching their Amazon purchases from the previous tax year to determine which purchases need to be included on their Form 1 Line 34–Use Taxes.

With the new information, all taxable Amazon purchases will already have taxes paid, so you won’t need to figure out which ones still have use tax owed.

At least for now, this data is to help collect sales tax from third-party sellers, not use taxes from buyers.


When the tax for a purchase is paid to the state by the seller it is called “sales tax.” When the tax is paid to the state by a buyer (often well after the sale), it is called “use tax.” All states with a sales tax also have an equivalent use tax, but of course you do not have to pay both. Since use tax is a hassle to keep track of and ensure you report on your Massachusetts income tax Form 1, it is much more convenient for the seller/Amazon to collect the sales tax for you.