Friday, February 11, 2011

About That Sales Tax Issue with Amazon...

Posted By on Fri, Feb 11, 2011 at 3:19 PM

On Thursday, Amazon announced that not only aren't they expanding in Texas, they're closing their distribution center there. You may recall that Amazon is in the middle of a huge dispute with Texas about whether the presence of such distribution centers meant that Amazon had a physical presence in the state, which would require them to collect sales tax. No longer.

Tennessee seemed to have been kind of, sort of, considering the same issue — would Amazon's planned distribution centers in Tennessee mean that Amazon should be collecting sales tax on in-state orders?

I think Amazon's willingness to pull out of states where it can't get favorable tax concessions probably signals how the issue will be resolved here. We just lost 1,900 jobs. We can't afford to lose any more.

My prediction: No sales tax on Amazon orders for us.

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