elgato
Joined: 24 Feb 2005
Posts: 17240
Location: Texas
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| Posted: Fri Jun 10, 2011 8:59 pm Post subject: Tax deal fires up Amazon |
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After an elongated battle in the state legislature, Amazon restarts a project in South Carolina that will create thousands of jobs at a new distribution facility. In Texas, meanwhile, Amazon faces opposition from the governor for a similar deal.
With a five-year reprieve from having to collect sales tax from customers in South Carolina finally approved by that state, Amazon has restarted plans there to open a new distribution center that it says will create 2,000 full-time jobs.
Amazon, No. 1 in the Internet Retailer Top 500 Guide, says it will begin hiring now for hundreds of newly created full-time jobs and expects to eventually fill 2,000 full-time positions.
"We're pleased to be moving ahead with plans to open a facility in South Carolina this fall, ultimately creating 2,000 full-time jobs in the state," says Dave Clark, Amazon’s vice president of North American operations. "We appreciate South Carolina's decision to welcome Amazon jobs and investment, and we look forward to a long, productive partnership with the state."
The move marks a sharp turnaround for Amazon, which said in April it had aborted its plans to develop distribution facilities in South Carolina after the state’s House of Representatives voted against a tax exemption package under a deal the retailer had made with former Gov. Mark Sanford, a Republican.
After negotiations among members of South Carolina’s House and Senate resulted in amendments to that package—the deal requires Amazon to create 2,000 jobs and invest at least $125 million in its South Carolina distribution facilities by the end of 2013—the full Legislature approved the tax incentive package, including property tax breaks and an exemption from collecting sales tax for five years.
more.. link to news article |
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lifemall
Joined: 07 Jun 2011
Posts: 37
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| Posted: Sat Jun 11, 2011 6:19 am Post subject: |
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Amazon can't win with this. It will be interesting to see what they do when most or all states follow SC's lead e.g. do they move their HQ? Do they drop selling physical products and concentrate on digital goods?
What's certain, competition from the likes of Walmart, Home Depot, Target and other physical retailers gaining steam online will hurt them. |
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