Posted on 02/11/2011 6:18:58 PM PST by NCjim
As a result of an ongoing tax dispute with Texas, Amazon.com has decided to take its ball and go home.
The online retailer said Thursday that it would shutter its Irving distribution facility April 12 and cancel plans to hire as many as 1,000 additional workers rather than pay Texas what the state says is owed in uncollected sales tax.
Texas wants $269 million from Seattle-based Amazon in past-due sales tax. It sent the bill to the company last October.
“Despite much hard work and the support of other Texas officials, we’ve been unable to come to a resolution with the Texas comptroller’s office,” Dave Clark, vice president of operations for the facility, said in a letter sent to its employees here announcing the closure.
“Closing this fulfillment [distribution] center is clearly not our preferred outcome,” he said.
“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.”
State officials weren’t backing down Thursday.
“We regret losing any business in the state of Texas,” said Allen Spelce, spokesman for the comptroller’s office. “But our position hasn’t changed: If you have a physical business presence in the state of Texas, you owe sales tax.”
Amazon continues to appeal the tax bill through an administrative process, Spelce said, “and it’s going to be a while” before a decision and potential appeals are completed.
(Excerpt) Read more at dallasnews.com ...
Just out of curiosity even *if* they pack up and go home they still owe the Tax money right?
Too many corporations are pitting one state and municipality (meaning you and I) against each other for cutting special deals ...free land, tax breaks, kickbacks etc.
The NFL teams pulled that scam so that taxpayers were forced to fund billion dollar stadiums. Business should expand or build based only upon a business plan that has no taxpayer involvement. If they can’t make a profit, then don’t build, but leave taxpayers out of it.
I support a national law that levels the playing field so that business can’t pit Pittsburgh taxpayers against Cleveland. They need to make a go of it on their own without taxpayer help...period. When did this all start where business looks to taxpayers for providing capital?
Perry said he would work with the Republican-controlled Legislature to try to make sure Amazon can stay. And he was bluntly criticial of his fellow Republican Combs:
"That is a problem and I would suggest to you that we need to look at that decision that our comptroller made," he told the Examiner. "The comptroller made that decision independently. I would tell you from my perspective that's not the decision I would have made."
Perry said he would work with the Republican-controlled Legislature to try to make sure Amazon can stay. And he was bluntly criticial of his fellow Republican Combs:
"That is a problem and I would suggest to you that we need to look at that decision that our comptroller made," he told the Examiner. "The comptroller made that decision independently. I would tell you from my perspective that's not the decision I would have made."
cudos to Amazon. The parasitic bureaucrats at all levels of government NEVER stop in their pursuit of the wealth of the Producers. Governments everywhere are the enemy of Freedom. I am glad Amazon is standing strong against this and online taxes. The vast majority of government workers at ALL levels perform no real (productive) work.
They are going to have trouble finding a state that does not have the physical presence = taxable sales rule.
Maybe for in-state sales, but certainly not out-of-state...
This reminds me of people living in Ma.driving to NH to purchase cigarettes and alcohol and the Ma.police were searching cars at the stateline and demanding tax payments.Insane!
All taxation should be on the individual. Taxing corporations is simply hiding the tax in the price of goods. People should feel the impact of all the “services” they want the government to provide.
Maybe for in-state sales, but certainly not out-of-state...
I didn’t read this entire article. But I believe I read in another that Texas wants to collect Texas Sales Tax on out of state purchases. Amazon already collects sales tax on in-state purchases.
Kentucky has an Amazon Distribution center here too and they collect sales tax on in-state purchases here. As much as I like Texas I think that they are wrong to try and collect Texas Sales tax on out-of-state purchases. If anyone has the right to collect Sales tax it’s the states where the purchaser lives and had the items delivered to.
Meadow muffins!
The problem is government. The solution isn't more government.
Adding laws is STUPID.
/johnny
My guess is about the same time the taxman looked to business to take their capital to pay for social programs and whatnot.
I don't disagree with you in theory, it's just the reality. Business pay a myriad of taxes - including half of SS among others, not to mention fees and permits up the whazoo. Businesses have been used to serve as a slave tax collector - just pass it on to the customer so they don't blame us. Case in point - who makes more money off a gallon of gas - it's not big bad oil.
My opinion is that the cause of this is the lack of personal responsibility of the general public. There will be a 911 operator taking a call if MCD's runs out of chicken nuggets and hell to pay if little Johnny's parents have to fork up more than $50 for a year of public school and coincident babysitting services.
I'd like pay as you go for the services you use. If certain services aren't used - get rid of them.
Take care.
I think it’s going to be hard for Amazon to convince a court that they have no direct relationship with a distribution center, when they seem to have direct control in being able to close it and move it, or to hire or fire workers.
And the law is clear, if you have any business relationship in a state, you are required to collect from the residents of the state the sales tax those residents are required to pay.
Amazon was trying to help Texas residents cheat on their sales taxes, and Texas is calling them on it. And Amazon is proving them right, by exercising direct control over their so-called “independent” distributer.
In this case it isn’t a tax Amazon has to pay, it’s a tax Amazon was supposed to collect, just like the mom-and-pop book store down the street had to collect the sales tax. Amazon realised they could make more money if they helped people cheat on their taxes, just like some businesses find they can make more profit if they hire illegal immigrants and pay them under the table so they don’t have to pay taxes on them.
Amazon insists they don’t have any Texas employees, and that’s why they don’t have to collect Texas sales tax.
If your state has a sales tax, and nobody in your state pays it, are you ready to have your roads piled up with snow, full of potholes, with bridges collapsing and lights failing?
How do you expect your state to collect taxes, if some companies can get away with helping people cheat?
How is not being extracted by force, a tax, or fine, or fee....’looking for capital’?
Why should there be a single tax? Values are different, citizens ought to be able to shape the kind of economy they want. Some want Detroit, and have it. Others want Houston, and have it.
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