It seems that wherever Amazon goes, sales tax issues will follow. After pulling out of planned distribution centers in both South Carolina and Texas, the online retailer may now be leaving a planned facility behind in Tennessee. The company is usually unlikely to issue press statements on such issues, but this time Amazon is coming out swinging.
The facility, if completed, would provide about 1400 jobs to the local economy. Amazon thought it had a deal with state officials to forego state sales tax, but now that the facility is in the works, government officials have changed their tune. "… why would we want to come to a state that made a commitment not to harass us in this way and then, once we get there, the very first thing we face is a lawsuit?" Amazon VP of Public Policy Paul Misener told Chattanooga’s Free Times.
It is common practice for retailers that have a physical presence in a state to charge users sales tax if they too reside in the state. Amazon has made its name offering great deals in part thanks to not charging sales tax. Do you think Amazon should be allowed to staff warehouses in a state and not collect sales tax?