Amazon closing TX distribution center over tax dispute

[GeronL]

Apparently Texas is trying to collect sales taxes on items purchased in other states and distributed from Texas. That's like double taxation. Now Amazon is closing the local distribution center, I mean local because I live in this town.

http://www.chron.com/disp/story.mpl/ap/tx/7421957.html

AUSTIN, Texas — Online retail giant Amazon.com is closing a suburban Dallas distribution center and scrapping plans to expand Texas operations after a dispute with the state over millions of dollars in sales taxes, an executive informed employees Thursday in an e-mail obtained by The Associated Press.

Dave Clark, Amazon's vice president of operations, writes in the e-mail that the center will close April 12 due to Texas' "unfavorable regulatory climate." It was not immediately clear how many employees work at the facility.

The Texas comptroller's office last year demanded $269 million in uncollected sales taxes from Amazon. The company subsequently filed a lawsuit against the state, demanding it produce the audit that generated the figure.

The state contends Amazon.com is responsible for sales taxes not collected on online sales in Texas.


excerpt

[JohnBrowdie]

cue Mia condemning rick perry.

[Vonne]

As huge of an Amazon fan as I am, it still amazes me that they've parlayed their booksellers position into a sales tax dodging capability, ...and that it has still held up.

Quite a few states have mandated that Internet retailers whom have actual physical locations within their state, are required to collect sales tax for purchases shipped to addresses within that state.  Amazon has closed other facilities to avoid those states.

What is peculiar about this article, is the emphasis that the state attempted to exceed their reach and demand sales tax be turned over for out of state orders as well. 

[jafo2010]

As we have been reading, Texas needs all the revenue it can get.  I know, why don't they charge sales tax for every state and divide it equally......with the sole exception of big ticket items, I always assumed one did not pay taxes when buying in other states and having it shipped to your state?

Texas folks better get used to MORE moths flying from their wallets because Gov Perry is going to lighten it for them.....

[Miss Mia]

As we have been reading, Texas needs all the revenue it can get.  I know, why don't they charge sales tax for every state and divide it equally......with the sole exception of big ticket items, I always assumed one did not pay taxes when buying in other states and having it shipped to your state?

Texas folks better get used to MORE moths flying from their wallets because Gov Perry is going to lighten it for them.....

You don't.  If I purchase something from outside of Texas I don't pay sales tax.  There's a difference, if I purchase something from say, Target.com, and since they do have stores in Texas even if I purchase it online I pay sales tax.  

I don't agree with charging Amazon sales tax if they're for purchases outside of the state.  And this particular center opened in 2005, why is the state just now going after them?  I worked at an independent coffee shop that was delinquent in paying their sales tax.  A month or so after I left there, the state came in an shut the place down and they weren't 5 years behind in sales tax either.

[jafo2010]

Mia, hold on....taxes are going one way....

[Miss Mia]

Mia, hold on....taxes are going one way....

That's impossible, Tea Partier Perry can never ever raise taxes. 

[JohnBrowdie]

That's impossible, Tea Partier Perry can never ever raise taxes. 

a tax is theft.  in general, a tea partier would never raise theft.

[jafo2010]

So, what is the plan then?  I thought I read on here that Texas is short some $27 billion in revenue?  Is it Barry to the rescue?

[Miss Mia]

a tax is theft.  in general, a tea partier would never raise theft.

 :

He'll end up raising taxes.  They need to fix his bungled business tax reform, the one he said would help with individuals property taxes, because the state would be getting more from business.  Well it didn't get more from business, it got less and property taxes in Texas still went up. 

I'm sure he won't call them taxes, they'll be "fees."

[JohnBrowdie]

you need to appreciate his governance, missy!

(heh. watch this)

:

He'll end up raising taxes.  They need to fix his bungled business tax reform, the one he said would help with individuals property taxes, because the state would be getting more from business.  Well it didn't get more from business, it got less and property taxes in Texas still went up. 

I'm sure he won't call them taxes, they'll be "fees."

[Miss Mia]

you need to appreciate his governance, missy!

(heh. watch this)

I don't need to appreciate anything about Perry.  There's a reason I don't vote for him.

There's only so much you can cut to reach $27B and there isn't a federal stimulus to save us this time.  He'll have to raise taxes somewhere.  I guarantee it. 

[JohnBrowdie]

I don't need to appreciate anything about Perry.  There's a reason I don't vote for him.

There's only so much you can cut to reach $27B and there isn't a federal stimulus to save us this time.  He'll have to raise taxes somewhere.  I guarantee it. 

and if the bald guy was in his place, you would be singing a different song

[Miss Mia]

and if the bald guy was in his place, you would be singing a different song

If the bald guy was in, there wouldn't be talk of the decimating cuts Perry's proposing.  Cuts yes, and tax increases yes, but the people that voted for Perry and what Perry's been saying is no new taxes.  He'll have to go back on his word.  The one good thing is his little slush fund, the Texas Enterprise Fund, is about to go bye bye.

Oh and White wouldn't be living in a $10k/month rental either. 

[GeronL]

No, White would be in his office with lobbyists and business leaders handing out the patronage