Posted on 02/10/2011 1:13:01 PM PST by trumandogz
AUSTIN, Texas — Online retail giant Amazon.com will close its suburban Dallas distribution center after a dispute with the state over millions in state sales taxes.
The Associated Press obtained an e-mail Thursday sent to Amazon employees by the company's vice president of operations. Amazon's Dave Clark writes that the center will close April 12 due to Texas' "the unfavorable regulatory climate."
(Excerpt) Read more at chron.com ...
It is great to see Amazon doing this but I am shocked that it is Texas of all places.
The Texas legislature should remedy this problem promptly. I am glad to see Amazon stand for its consumers.
Kind of an odd position for Washington-based Amazon. Their HQ is here and they collect sales taxes for the business that they conduct within the state.
How is this different from their business in Texas?
The politicians don’t seem to grasp the idea that with modern shipping and logistics, a company like Amazon can pick and choose where it wants to do business.
Texas politicians always brag about the state’s ;lack of an income tax and limited regulation, but they do not often talks about the sales tax and the high property taxes nor do they mention the nanny state regulation on personal behavior.
Impressive that they can make a change like this in two months. Doesn’t say where they are going.
huh?
The law is fairly clear that if you have a physical presence you pay tax in that state.
“Hide your wallets, Boys, the legislature’s back in session.” Mark Twain
Shipping is always the same price, and now I won't have to pay sales tax when I buy from Amazon.
And the morons in Austin might catch a whiff of a clue about how the mortal enemy of commerce is taxation.
Well I guess Amazon said “heck let’s get out of this Texas state ASAP and go somewhere that does not have those taxes”. No problem. Many states don’t have taxes like that. Obviously Amazon thinks this as well. It is certainly not Amazon’s loss, it is Texas’ loss. More unemployed for the Texans that obviously love this law.
They have to have their HQ somewhere, and I suppose that’s where the top guys want to live. But there’s no reason why a distribution center should be taxed as if it were a retail outlet. Presumably that can be moved to a state that is less troublesome.
The reason Amazon has to fight this is that if they give in to Texas, every other state will jump on them too. But this way, the tax writers may understand that their greed entails a penalty—loss of jobs and income to the state.
I pay that once a year shipping fee and throughout the year whatever I order is shipped free. This is great especially if you order frequently.
I agree.
Hey Amazon... Don’t let the door knob hit you in the A$$ on the way out.
If any company has a physical presence in a state, they must impose sales tax on shipments within that state. Period - all 57 states require that.
It’s up to Texas to show Amazon how they came up with that amount due.
Sounds like Amazon made a big mistake by locating it’s property in Texas. Maybe it could have serviced it’s southwest customers from a low population (low customer count) state like New Mexico, to allow it to ship into much bigger Texas tax free.
Yet, it still seems to me that with all the states and municipalities clamoring for more tax money, it seems like an opportune time to study the effect that across the board taxation on e-commerce transactions would have on that business model.
I’d sure rather have some other guy pay internet sales tax to help level the playing field with brick and mortar locations; rather than me get hit with more property taxes because the state defunds local school assistance in order for it to pay its bloated pension obligations.
Good for Amazon. If more American businessmen would show a spine when persecuted by Big Brother, we might still enjoy a little liberty in the US.
From the Austin statesman article.
“Under a 1992 U.S. Supreme Court decision, that physical presence means Amazon potentially could be forced by the state to collect sales tax on transactions in Texas, according to legal experts.”
No more taxes.
Okay, Amazon, move to California and see how you like it.
Love Amazon.
Very consumer friendly.
Stand up against the takers!
It's just a distribution center. They'll simply move those operations to another distribution center outside Texas, at least until they build another one.
It's too bad. I was getting some items from Amazon in a day or two, even with super-saver shipping.
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