Amazon Promises Jobs in Tax Pact with Texas

Susan Hall
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Amazon and the Texas comptroller have reached a deal in their long-running dispute over sales taxes, GeekWire reports.

 

The state billed the e-tailer $269 million for uncollected sales taxes from December 2005 to December 2009. Amazon, which has been locating distribution centers in states friendly to its demands not to collect taxes and punishing states that cross it, closed a Texas warehouse in protest. It then offered Texas a deal in which it would invest $300 million in distribution centers and add 6,000 jobs in the state if granted a 4 1/2-year pass on collecting state sales taxes.

 

California, South Carolina and Nevada have agreed to such deals, according to the Austin American-Statesman. Texas said no. Gov. Rick Perry harshly criticized Texas Comptroller Susan Comb's fight to collect the tax bill, saying it would cost the state jobs and discourage other companies from locating there. Under an agreement Comb forged with Amazon, however, the online merchant has agreed to bring 2,500 jobs and $200 million in capital investment to the state and to start collecting sales taxes on July 1. It has four years to comply with those conditions, but in a filing with the Securities and Exchange Commission, it states that the deal includes "resolution of Texas sales taxes" up to July 1. The deal included "an immaterial payment to the state," though neither side said how much it was.

 


Amazon will begin collecting taxes in Nevada in 2014, with lawmakers in other states pushing in that direction. Stories on the agreement don't go into the types of jobs to be created, but presumably, they will be at distribution centers.



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