Amazon Loses Tax Battle with Texas and Other States
May 16, 2012
Engadget’s Sean Buckley recently reported on Amazon’s tax troubles in the article, “Amazon to Collect Sales Tax, Create 2,500 Jobs in Texas.”
According to the article, starting July 1 Amazon, occupying 20 percent of all US online retail sales, will begin collecting a 6.25 percent sales tax on all of its products in Texas. The deal promises to bring more jobs to the state.
“The settlement resolves the online retailer’s ongoing dispute with the Lone Star state, which claimed that Amazon owed $269 million in back taxes. In addition to taking up collection, Amazon has agreed to create at least 2,500 jobs and invest a minimum of $200 million in capital investments, though it admits no fault, and believes the assessment was without merit, according to its latest SEC filing.”
Following Kansas, Kentucky, New York, North Dakota and Washington, Texas is the sixth state to collect sales tax from Amazon. This isn’t the end either, there are several other states on the horizon looking to fight the pesky sales tax battle with the online retail giant.
Jasmine Ashton, May 16, 2012
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