Amazon closing TX center amid dispute (TX wants taxes on internet sales)

[The Straight Story]

Amazon closing TX center amid dispute

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." Amazon spokeswoman Mary Osako would not say Thursday how many employees work at the Irving distribution center.

Texas contends Amazon is responsible for sales taxes not collected on online sales in the state. The comptroller's office last year demanded $269 million in uncollected sales taxes from the company. The case is currently pending before the State Office of Administrative Hearings.

"We regret losing any business in Texas, but our position hasn't changed: 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," said Allen Spelce, a spokesman for Texas Comptroller Susan Combs.

Spelce said Texas loses an estimated $600 million in Internet sales taxes every year.

http://news.yahoo.com/s/ap/20110210/ap_on_bi_ge/us_amazon_sales_tax_dispute

[MrModerate]

1. Amazon to Texas: "Drop Dead."

Perhaps if Texas had something other than the most regressive tax system in the country, they wouldn't be dying for revenue and trying to squeeze it from every stone the middle class and the poor have.

Ya know, like a graduated income tax? But no, that would require the wealthy to contribute more than the comparative pittance they do now. Can't have that.

[icnorth]

2. But wouldn't that mean collecting a

few shekels squirreled away in offshore tax shelters? We can't have any of that now, can we?

[MrModerate]

3. Well, they're already hiding those same shekels from the Fed . . .

So I wouldn't expect notable behavioral changes.

[Vinca]

4. Someone better tell the Governor not to be so silly.

As a Republican, he surely knows businesses do not pay taxes.

[SpiralHawk]

5. "You TexaPubbies claim you hate taxes. We are tax shirkers. Done deal. We be gone." - Amazon

"You Texican Repubbies have fouled your own nests. Now you can eat shit and die, just like you been beggin for..."

- Amazon

[Greg K]

6. We in NY have had to pay sales tax on Amazon purchases for a while now. nt

[DainBramaged]

7. More government more Taxes, way to go Teabag Texas.....

[DireStrike]

8. While it's always fun to make fun of Texas... let's not cheer Amazon here. -nt-

[Statistical]

9. Why? Sales taxes are regressive and stupid.

If companies make it difficult to collect sales taxes (and more and more and more of spending will be via internet in the future).

Then maybe, just maybe states will be pushed away from collecting taxes via sales and towards collecting taxes via income. If TX had no sales tax and collected and equivalent amount of revenue from income taxes the whole TX-Amazon "war" would be moot.

[WolverineDG]

10. I've had to pay taxes on internet sales for quite some time

Pay up & stop being tax cheats, Amazon.

dg

[Statistical]

11. How is amazon cheating. Businesses don't pay the sales tax. The consumer does.

Amazon has ever right to not become the unpaid collection arm of state governments.

Why not simply eliminate sales taxes and raise the income tax?

[PBS Poll-435]

12. It is against the Constitution to have an income tax in Texas

However, I look forward to a regulatory guidance letter found in somebody's desk drawer from Carol Keeton Rylander Strayhorn McClellen telling Amazon that it did not need to collect sales tax from orders placed in Texas because of nexus.



Texas is broke like everywhere else and they are trying to find money wherever they can find it.

[Statistical]

13. Didn't know income tax was against the Constitution.

I do agree that everyone is broke and therefore are looking at juicy revenue targets.
However long term TX actions will be counter productive.

Amazon is smart to protect their interests and move operations to states that don't attempt to strongarm Amazon into state revenue colleciton system. I mean why would a company want to collect sales tax? It takes time, money, resources, and there is no benefit to the company. At best they simply spend their resources to help the state. At worse they make a mistake and get sued by the state.

[PBS Poll-435]

14. The Texas Constitution

Not the US one. ;)



The state a few years back added a "margin" tax for businesses. They have reformed it a little bit, by changing it to 1 million in sales, but it is still an income tax using a formula that some excludes common COGS deductions and limiting G&A to 4%.

[Statistical]

15. Yeah I got that you were talking about TX Constitution.

I guess it is unlikely then TX will be passing an income tax anytime soon. Strange the Constitution prohibits income tax but allows sales, real-estate, and other taxation. Also puts TX between a rock and a hard place when it comes to internet sales (which will only grow).

[PBS Poll-435]

17. This is a very weird State

Run mainly on sales & liquor taxes.

The cities, counties, and "independent school districts" are run on property taxes.

But all of the "as seen on TV" ads never ask or tell customers to add sales tax to their payment.

Shake Weight!



Now, TX wanted retroactive sales tax?


:rofl:

[WolverineDG]

18. they're supposed to collect it when you make a purchase

Have you never ever looked at a receipt?


dg

[barbiegeek]

16. This is good example of how sales tax versus progressive income tax doesn't work