Cliffnotes version of argument.
Amazon says it should not have to pay sales tax and Texas disagrees. Amazon threatens to leave and take the 119 jobs to Oklahoma if Texas forces it to pay the taxes. Texas struggles with the decision, but ultimately decides to pursue the taxes which forces Amazon out of the state.
Texas Says Amazon Owes $269 Million in Sales Tax - WSJ.com
Amazon's Exit Spurs Tax Fight in Texas - WSJ.com
I think this is a tough scenario and there is not really a way for Texas to win. But I think them letting Amazon dictate the tax laws in the state is good way for them to get beat even worse than losing the jobs from Amazon moving.
Amazon says it should not have to pay sales tax and Texas disagrees. Amazon threatens to leave and take the 119 jobs to Oklahoma if Texas forces it to pay the taxes. Texas struggles with the decision, but ultimately decides to pursue the taxes which forces Amazon out of the state.
Texas Says Amazon Owes $269 Million in Sales Tax - WSJ.com
Amazon.com Inc. said it received an assessment of $269 million for uncollected sales tax from the state of Texas.
In the filing, Amazon said Texas "did not provide a sufficient basis for its assessment" and said it was without merit. "We intend to vigorously defend ourselves in this matter," it said.
In a statement R.J. DeSilva, a spokesperson for the Texas Comptroller's office, said that Amazon was audited for sales tax, and sent a bill in August. "The company has requested a re-determination which means this is an ongoing audit and could be decided as part of the administrative hearings process. The company would send documents and this process will continue," he said.
Amazon's Exit Spurs Tax Fight in Texas - WSJ.com
The planned closure of an Amazon.com Inc. distribution center in a suburb here has opened a debate about whether taxes or jobs is the better answer for Texas' tattered budget.
The online retailing giant said last week that it would close its center in Irving due to a dispute with the state comptroller, who is demanding that Amazon pay $269 million in sales taxes it should have collected on goods sold to Texas residents.
The uncollected taxes of goods sold online and through catalogs amounted to $8.6 billion in 2010, according to the National Conference of State Legislatures.
With its Irving warehouse, Amazon is considered to be doing business in Texas and is required to send in sales taxes for items it sells to state residents, Ms. Combs has argued. Last September, she sent Amazon a bill for taxes she said the company failed to collect from 2005 to 2009.
I think this is a tough scenario and there is not really a way for Texas to win. But I think them letting Amazon dictate the tax laws in the state is good way for them to get beat even worse than losing the jobs from Amazon moving.

