LINCOLN, Neb. (AP) — Online retailer Amazon says it plans to start collecting sales taxes on purchases in Nebraska next year, a decision that could generate millions for the state.

An Amazon spokesman says the company will start collecting the taxes on Jan. 1.

State Tax Commissioner Tony Fulton says the announcement will help ensure Nebraska consumers comply with existing laws. Consumers are already legally required to report and pay the tax through their annual tax returns, but few ever do.

Fulton says Amazon’s move is a good example of “responsible corporate citizenship” and a chance to educate Nebraska residents about the law.

The announcement follows a similar announcement by Amazon in Iowa.