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Amazon agrees to collect sales tax in Texas

Online retailer Amazon.com has agreed to start collecting Texas sales tax on July 1.

Amazon 2012 03 19Enlarge
The Amazon logo is projected on a screen at a press conference in New York on Sept. 28, 2011. (Emmanuel DUNAND/AFP/Getty Images)

Online retailer Amazon.com has agreed to start collecting Texas sales tax on July 1, the Houston Chronicle reported.

As part of the agreement, Texas will drop its attempts to collect back taxes from Amazon, Fox News reported. In 2010, Texas Comptroller Susan Combs said that the company, which operated a warehouse near Dallas through a subsidiary, owed the state $269 million in back sales taxes and needed to pay up, according to the Houston Chronicle.

In retaliation, Amazon closed the warehouse, the Associated Press reported. Gov. Rick Perry criticized Combs' attempt to collect the taxes, saying it would discourage companies from moving to Texas.

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"We thank Amazon for partnering with us to find a solution that works for our state,” Combs said in a statement today, according to the Houston Chronicle. "This is an important step in leveling the playing field in Texas; however, Congress should enact federal legislation that will give states access to revenues that are already due, which would resolve this issue fairly for all retailers and all states."

Amazon has promised to create at least 2,500 new jobs in Texas over the next four years and invest $200 million in the state, the comptroller's office said, the Houston Chronicle reported.

According to the AP:

In a Securities and Exchange Commission filing Friday, Amazon said it still believes it never owed Texas any taxes but had nevertheless reached a settlement.

The agreement is just the latest dispute Amazon has settled with states seeking to boost revenue.

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Earlier this week, Amazon agreed to collect sales tax on items sold in Nevada, beginning in 2014 or earlier if the federal government passes legislation to require all online retailers to collect sales taxes, Fox News reported.

According to the AP, Amazon has said in the past that it supports a national, standardized approach to collecting sales tax.
 

http://www.globalpost.com/dispatch/news/regions/americas/united-states/120427/amazon-agreement-collect-sales-tax-texas-susan-combs