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WEBVTT REPORTER: THE FIRST OF THEREPORTER: THE FIRST OF THEMONTH, MEANS A NEW TAX FORAMAZON CUSTOMERS IN VERMONT.>> THE TAX ISSUE WAS REALLY ANISSUE OF FAIRNESSREPORTER: PHOENIX BOOKS MANAGER,TOD GROSS SAYS THE RISE OFONLINE RETAILERS LIKE AMAZON HASBEEN TOUGH ON TRADITIONAL BRICKAND MORTAR BUSINESSES.>> WE DIDN'T REALLY UNDERSTANDWHY INTERNET COMPANIES WEREN'THAVING TO COLLECT SALES TAX WHENANYBODY ELSE HAS TO COLLECT IT,AND IT FELT LIKE THEY WERE JUSTSTEALING FROM LOCAL COMMUNITIES.REPORTER: THE SIX% SALES TAX ONONLINE PURCHASES COULD HELP EASETHAT PAIN.ECONOMIST ART WOLFE THINKS THEPRACTICE COULD HELP LEVEL THEPLAYING FIELD >> IT'S GOING TO MAKE AMAZONGOODS A LITTLE MORE EXPENSIVE,COMPARED TO BUYING IT LOCALLYREPORTER: BUT GROSS SAYSSPECIFICALLY BOOK STORES HAVESEEN A SHIFT SINCE THE RISE OFTHE ONLINE GIANT.>> THEY'VE BECOME SO DOMINANTTHAT THEY NO LONGER NEED TO MAKEMONEY SELLING BOOKS. THEY USEBOOKS BASICALLY AS A LOSSLEADER, TO GET PEOPLE TO COMEONTO THEIR WEBSITE SO THEY CANSELL THEM OTHER THINGS. SO FORUS, WE'RE NOT COMPETING ONPRICE, WE'RE COMPETING ON VALUE.REPORTER: MEANING, THEEXPERIENCE OF SHOPPING IN ATRADITIONAL BOOK STORE, KEEPINGTHAT MONEY LOCAL AND SUPPORTINGSMALL BUSINESSES IS WHAT KEEPSBOOKWORMS COMING IN THE DOOR.>> YOU'RE IN A BOOKSTORE ANDYOU'RE BROWSING AND YOU'RETALKING TO REAL PEOPLE THAT LOVEBOOKS, THAT'S AN EXPERIENCE THATCAN'T BE REPLICATED ONLINEREPORTER: THE TAX IS EXPECTED TOBRING IN ABOUT 5MILLION DOLLARSA YEAR.

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The first of the month means a new tax for Amazon customers in Vermont. “The tax issue was really an issue of fairness,” Phoenix Books manager Tod Gross said. Gross said the rise of online retailers like amazon has been tough on traditional brick and mortar businesses. “We didn't really understand why internet companies weren't having to collect sales tax when anybody else has to collect it, and it felt like they were just stealing from local communities,” Gross said. The 6 percent sales tax on online purchases could help ease that pain. Economist Arthur Woolf thinks the practice could help level the playing field. “It's going to make amazon goods a little more expensive, compared to buying it locally,” Woolf said. But Gross said specifically book stores have seen a shift since the rise of the retail giant. “They've become so dominant that they no longer need to make money selling books. They use books basically as a loss leader, to get people to come onto their website so they can sell them other things. So for us, we're not competing on price, we're competing on value,” Gross said. He said the experience of shopping in a traditional book store, keeping that money in Vermont and supporting small businesses is what keeps bookworms coming in the door. “You're in a bookstore and you're browsing and you're talking to real people that love books, that's an experience that can't be replicated online,” Gross said. The tax is expected to bring in about $5 million a year.