Texas Whacks Amazon.com with $269 Million Sales Tax Bill

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Following the lead of several other cash-starved states, Texas has sent a bill to the Internet giant for estimated uncollected sales tax for the period December 2005 through December 2009.

At the core of the assessment is the contention by Texas officials that Amazon has a physical presence in the state and therefore is required to collect sales tax. While Amazon admits that is has a fulfillment center there, it claims that the operation is an affiliate, not a subsidiary of the online retailer.

Ever since online retailing took off over ten years ago, states throughout the country have been looking for ways to charge consumers and Internet retailers sales taxes on Internet sales to help balance their budgets. Current laws require that companies must have a physical location in a state before they are required to collect the taxes, and many states are seeking new laws to require retailers to collect taxes on sales made within their states.

The Wall Street Journal

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Comment (1)
  1. Retailers says:

    The bipartisan vote sends the bill to the Senate, where its prospects for passage are good. Retailers

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