 |
Power Sellers Unite
Bringing Buyers and Sellers Together
|
| :: |
| Author |
Message |
elgato
Joined: 24 Feb 2005
Posts: 17240
Location: Texas
|
| Posted: Sat Feb 12, 2011 11:00 am Post subject: Amazon’s Texas showdown |
|
|
Rather than giving in to the state’s demand to collect sales tax on online purchases, Amazon is closing its Texas fulfillment center and scuttling plans to build more. Texas says the online retailer owes at least $269 million in taxes, interest and penalties.
Amazon,com, Inc says it will close its Dallas area fulfillment center and reverse its plans to build additional centers in Texas, where the world’s leading web-only retailer was unable to reach an agreement with state officials to avoid collecting sales tax on purchases made by Texas residents.
“Closing this fulfillment center is clearly not our preferred outcome,” Dave Clark, Amazon’s vice president of North American operations, said in a memo distributed this week to employees. “We were previously planning to build additional facilities and expand in Texas, bringing more than 1,000 new jobs and tens of millions of investment dollars to the state, and we regret the need to reverse course.”
Clark said Amazon, No. 1 in the Internet Retailer Top 500 Guide, decided to terminate its fulfillment center operations in Texas because of “the unfavorable regulatory climate” created by the office of the Texas Comptroller of Public Accounts.
more.. link to news article |
|
| Back to top |
|
elgato
Joined: 24 Feb 2005
Posts: 17240
Location: Texas
|
| Posted: Wed Jun 22, 2011 6:25 pm Post subject: Re: Amazon’s Texas showdown |
|
|
"Amazon Attempts Sales Tax Workaround in Texas"
The debate regarding the way Amazon.com does its online business has been going on for some time now. The major point of contention has been the fact that for years, Amazon has been able to sell and ship goods across most of the country without charging any state sales tax.
It’s not hard to see why this practice upsets some groups within the states, especially those who protect the interests of brick and mortar stores both large and small. Why would a customer buy a $700 home theater system from a local electronics retailer and pay 6% sales tax (or more) when they can get it shipped to their door free of that state-imposed sales tax via Amazon?
Some states have stepped up and voted to approve new tax laws that require online retailers to collect state sales taxes. Most recently the state of California voted on this issue as part of their new budget.
Here’s how it usually goes – a state decides to enact laws requiring companies like Amazon to collect sales tax. Amazon threatens to sever ties with the affiliates in that state. TheStreet.com has a nice map that shows the current state of the union when it comes to the Amazon tax wars.
Apparently, Amazon has extended a compromise to the Lone Star State. Amazon proposes that they would spend $300 million in the establishment of distribution centers across the state that would provide over 5,000 jobs to Texans. All they ask in return is to remain exempt from collecting sales tax for the next 4 1/2 years.
more.. link to news article |
|
| Back to top |
|
| |
|  |