Amazon to Begin Collecting Sales Taxes in Texas: Report

Published April 27, 2012

| NewsCore

Amazon.com Inc. has agreed to begin collecting sales tax from Texas customers beginning July 1.

According to the Austin American-Statesman, the online retailer will also make capital investments of $200 million in projects in the state expected to create about 2,500 jobs.

As part of an agreement reached with Texas Comptroller Susan Combs, Texas will no longer try to collect back taxes from Amazon. In 2010, Texas officials alleged that Amazon owed $269 million for uncollected sales taxes.

The deal marks the latest effort the online retailer has made to settle ongoing sales tax disputes with state governments.

Earlier this week Amazon.com Inc. agreed to collect a sales tax on items sold in Nevada beginning in 2014, or earlier, should proposed federal legislation mandate that online retailers collect sales taxes.

Amazon has come under fire from several state governments for not collecting sales taxes on goods it sells on its website.

Amazon has in the past admitted it is obliged to add state and local sales taxes only on purchases from residents of states where the company has physical retail operations. But it also has defined retailing narrowly as selling, so related operations such as warehouses don't put it on the hook to charge tax.

In response, lawmakers in several states have passed new legislation aimed at limiting online retailers' wiggle room to avoid charging sales tax. Amazon has challenged those bills and has retreated from states it deems unfriendly.

URL

http://www.foxbusiness.com/technology/2012/04/27/amazon-to-begin-collecting-sales-taxes-in-texas-report/