Texas Amazon Rodeo Over Sales Tax
- Sales Tax News
- 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.