BREAKING NEWS: Amazon agrees to pay taxes in Texas
The Houston Chronicle is reporting breaking news that Amazon has agreed to collect and more importantly pay sales taxes for sales made within Texas. As a purchaser, I’m bummed. But, as a father of two school children, it’s about time.
This has been a hotly contested issue explained in more detail in my prior post from May of 2008.
Here’s the official statement from the Comptroller’s office.
(AUSTIN, TX and SEATTLE, WA) — Texas Comptroller of Public Accounts Susan Combs and Amazon.com, Inc. today announced an agreement that will lead to the creation of thousands of new jobs in Texas by the online retailer.
According to the agreement between the Comptroller of Public Accounts and Amazon, the Company plans over the next four years to create at least 2,500 jobs and make at least $200 million in capital investments in the state and will begin to collect and remit Texas sales tax on July 1, 2012. The agreement resolves all sales tax issues between Texas and Amazon.
“We thank Amazon for partnering with us to find a solution that works for our state,” said Combs. “This is an important step in leveling the playing field in Texas; however, Congress should enact federal legislation that will give states access to revenues that are already due, which would resolve this issue fairly for all retailers and all states.”
“Amazon looks forward to creating thousands of new jobs in Texas and we appreciate Comptroller Combs working with us to advance federal legislation,” said Amazon Vice President of Global Public Policy Paul Misener. “We strongly support the creation of a simplified and equitable federal framework, because Congressional action will protect states’ rights, level the playing field for all sellers, and give states like Texas the ability to obtain all the sales tax revenue that is already due.”
Will other states that want to keep distribution facilities and affiliated marketers follow?