Amazon Two-Stepping Out of Texas Over Sales Tax

Paul Lilly

Amazon is at odds with the state of Texas over what the state claims is $269 million in unpaid taxes, which ultimately prompted the online mega e-tailer to close a distribution center in Dallas and cancel plans to build additional facilities in the state, according to a report in the Associated Press. The AP got its paws on an email sent to Amazon employees by Dave Clark, the e-tailer's VP of operations. In it, Clark announced the closing due to the state's "unfavorable regulatory climate."

It's unclear how many employees work at the affected distribution center, but the decision certainly comes as a blow to the state of Texas.

"We regret losing any business in Texas, but our position hasn't changed," said Allen Spelce, a spokesman for Texas Comptroller Susan Combs. "If you have a presence in the state of Texas you are required to pay sales tax, just like any other business that has a presence in Texas."

According to Clark, the plan to build additional facilities in Texas would have added "more than 1,000 new jobs and tens of millions of investment dollars to the state."

This isn't the first time Amazon has played hardball with states trying to collect sales tax. To avoid having to do so, the e-tailer killed off its affiliate program in Colorado, North Carolina, and Rhode Island

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