Texas Amazon Rodeo Over Sales Tax

Apr 25, 2012 | Susan McLain

Texas is dealing with Amazon. It’s recently been reported that “Amazon.com is negotiating with the state to start paying Texas sales taxes on online sales and to create some jobs in the state….”

In 2010, state comptroller Susan Combs sent Amazon a bill for $269 million in sales taxes for sales from December 2005 to December 2009. The company responded with threats to close down the warehouse operation that they claim does not create nexus for them in the state. As a result, nexus legislation was sent to the Governor but promptly vetoed. However, in later legislation, the “nexus” requirement was successfully modified to include facilities like the one Amazon.com was operating in Texas.

Representative John Otto has been “…involved in the online sales tax issue at the legislative level, but said he isn’t directly involved in current negotiations,” but negotiations are on the table. Though not privileged to be part of the negotiations, Otto has expressed, “I told Susan [Combs] I just want a better deal than California got.” A better deal would mean that Amazon would start collecting taxes “…this fiscal year or within the next four or five months,” since California’s agreement has Amazon collecting starting this September.

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Avalara Author

Susan McLain

Avalara Author Susan McLain

Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”