Amazon Two-Stepping Out of Texas Over Sales Tax - Techist - Tech Forum

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Old 02-14-2011, 10:04 AM   #1 (permalink)
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Default Amazon Two-Stepping Out of Texas Over Sales Tax

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Amazon is at odds with the state of Texas over what the state claims is $269 million in unpaid taxes, which ultimately prompted the online mega e-tailer to close a distribution center in Dallas and cancel plans to build additional facilities in the state, according to a report in the Associated Press. The AP got its paws on an email sent to Amazon employees by Dave Clark, the e-tailer's VP of operations. In it, Clark announced the closing due to the state's "unfavorable regulatory climate."

It's unclear how many employees work at the affected distribution center, but the decision certainly comes as a blow to the state of Texas.

"We regret losing any business in Texas, but our position hasn't changed," said Allen Spelce, a spokesman for Texas Comptroller Susan Combs. "If you have a presence in the state of Texas you are required to pay sales tax, just like any other business that has a presence in Texas."

According to Clark, the plan to build additional facilities in Texas would have added "more than 1,000 new jobs and tens of millions of investment dollars to the state."

This isn't the first time Amazon has played hardball with states trying to collect sales tax. To avoid having to do so, the e-tailer killed off its affiliate program in Colorado, North Carolina, and Rhode Island

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Old 02-14-2011, 10:59 AM   #2 (permalink)
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Default Re: Amazon Two-Stepping Out of Texas Over Sales Tax

Sounds a little 'wah wah taxes' to me, though I don't know the full story.
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Old 02-14-2011, 11:22 AM   #3 (permalink)
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Default Re: Amazon Two-Stepping Out of Texas Over Sales Tax

texas is really hard on datacenters with taxes though. of course some of the older ones and big playes like the planet/softlayer, rackspace, colo4, etc got grandfathered in. for new providers its harder now.
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Old 02-14-2011, 03:54 PM   #4 (permalink)
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Default Re: Amazon Two-Stepping Out of Texas Over Sales Tax

It's quite simple really. Pay your **** taxes or gtfo.
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Old 02-14-2011, 04:45 PM   #5 (permalink)

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Default Re: Amazon Two-Stepping Out of Texas Over Sales Tax

It's becoming more and more of an issue. Large corporations are able to bully governments into getting what they want because everyone is so desperate for jobs. I hope Texas holds it's ground on this one. Especially with Amazon. They're one of the worst.
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Old 02-14-2011, 06:59 PM   #6 (permalink)
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Default Re: Amazon Two-Stepping Out of Texas Over Sales Tax

Isn't it worse though in california?
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Old 02-14-2011, 07:41 PM   #7 (permalink)
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Default Re: Amazon Two-Stepping Out of Texas Over Sales Tax

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Originally Posted by Baez View Post
It's becoming more and more of an issue. Large corporations are able to bully governments into getting what they want because everyone is so desperate for jobs. I hope Texas holds it's ground on this one. Especially with Amazon. They're one of the worst.
Texas will hold it's ground with a shotgun lol.
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Old 02-14-2011, 08:55 PM   #8 (permalink)
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Default Re: Amazon Two-Stepping Out of Texas Over Sales Tax

Eventually, it will get to the point companies will shut down if they have to pay a single cent to anyone.
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Old 02-14-2011, 09:29 PM   #9 (permalink)
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Default Re: Amazon Two-Stepping Out of Texas Over Sales Tax

The thing is, Amazon doesn't pay sales tax, the customer who buys from them that lives in Texas does. What exactly is the issue here? Was amazon charging sales tax from its customers but just not paying it to the state?
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Old 02-14-2011, 09:32 PM   #10 (permalink)
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Default Re: Amazon Two-Stepping Out of Texas Over Sales Tax

They are buying product from within Texas so therefor if Amazon collects the sales tax then it needs to go to the state. Apparently, they where not giving Texas it's sales tax.
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