Amazon Proposes Florida Deal: Sales Tax Holiday for Jobs
- Jan 26, 2012 | Will Frei
According to the Miami Herald, Amazon is trying to work out a deal with Florida Legislators. The company would spend up to $200 million to build distribution centers in Florida in exchange for allowing Amazon to wait two years before collecting sales tax.
The distribution centers would bring up to 3,000 new jobs to the Sunshine State. But the proposal has raised the ire of many business groups, including the Florida Retail Federation. "This is a bad deal for Florida and lawmakers should reject it . . . There is absolutely no good reason to continue to punish Florida-based small businesses for two more years," urged Rick McAllister, President and CEO of the Florida Retail Federation.
Other states have agreed to give Amazon a window before they begin collecting sales tax:
- Last year South Carolina gave Amazon until 2016 to start collecting sales tax. In exchange, the company is building distribution centers in the state and creating 2,000 new jobs.
- California struck a deal with Amazon last year, giving them until September 2012 before they have to collect sales tax.
- Earlier this month, Indiana Governor Mitch Daniels gave Amazon a "tax holiday" until 2014.
- Tennessee has given Amazon until 2014 to start collecting sales tax.