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Amazon sues Texas for sales tax audit

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  • Amazon sues Texas for sales tax audit

    I have a feeling that the free ride is coming to an end on internet sales taxes.


    By The Associated Press

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    AUSTIN, Texas (AP) — Online retail giant Amazon.com has filed suit against the state of Texas, demanding it produce an audit on which the state bases its demand for $269 million in uncollected sales taxes.

    The state made the demand of the Seattle-based company in September, citing the audit, the Austin American-Statesman reported in its online edition Wednesday. The newspaper reported the Texas comptroller's office has been withholding the report from Amazon, citing a Dec. 16 attorney general's opinion that it was protected by attorney-client privilege.

    The Texas attorney general's office referred all questions to the state comptroller's office. Comptroller's spokesman R.J. DeSilva said no papers had been served yet and declined to comment.

    The state contends that Amazon is responsible for sales taxes not collected on online sales in Texas because Amazon has a distribution center in Irving, a Dallas suburb. Other companies with retail outlets or other types of physical presence in a state collect sales taxes on online sales.

    Amazon filed the lawsuit Friday in Travis County state district court, contending that the state must disclose the audit under the state's Public Information Act.

    According to the court documents, Amazon sent letters in September and October to the state comptroller's office, requesting "information related to the audit and the assessment."

    The online giant has been the target of numerous lawsuits filed by states seeking sales taxes on online purchases made from within their jurisdictions. Online competitors such as Dell, J.C. Penney and Sears Roebuck & Co. have complained about having to levy the sales taxes while Amazon does not.

    State Comptroller Susan Combs has estimated that Texas loses about $600 million in sales taxes each year from interstate online sales.

  • #2
    That sucks.. I love Amazon due to the prices and no tax.

    They need to dump their hub here in TX and move to Oklahoma.

    Comment


    • #3
      Originally posted by 8mpg View Post
      That sucks.. I love Amazon due to the prices and no tax.

      They need to dump their hub here in TX and move to Oklahoma.
      I'll laugh when they do just that. Their building out by the airport is around a million square feet.
      Originally posted by racrguy
      What's your beef with NPR, because their listeners are typically more informed than others?
      Originally posted by racrguy
      Voting is a constitutional right, overthrowing the government isn't.

      Comment


      • #4
        The state of illinois went after amazon for taxes, and amazon immediately dumped all of their illinois affliates, putting people of out work, and actually costing the state more lost tax revenue. Good move there illinois.

        A SMART state would woo amazon - that irving warehouse probably generates a lot of tax revenue and provides a lot of jobs.

        Short sighted, money grubbing politicians are going to kill the golden goose.
        Last edited by mikeb; 01-20-2011, 09:41 AM.

        Comment


        • #5
          Originally posted by 8mpg View Post
          They need to dump their hub here in TX and move to Oklahoma.
          They don't need to dump it, all they've done is when someone in Texas buys something they just ship it form another distribution center located outside Texas to get around the sales tax deal. You used to be able to get free super saver shipping and have it show up within 2 days, then when all this came about it jumped back up to 5-6 days. They still ship to people in surrounding states through the Irving center.

          I am betting as well that the days of no tax are numbered ... especially with all the budget deficits.
          DamonH

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          • #6
            I am just amazed at the amount of taxes we already pay. It seems to be a problem of states not having a way to collect taxes from online sales and I'm really not sure they should be able to especially in the case of Texas. They always seem to waste more than they do any real good. America needs a real awakening cause it is swiftly going down the tubes. Come on America wake up.

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            • #7
              Amazon announced they would pull out of Texas about two weeks ago. OOPS

              I agree about taxes, we pay enough fucking taxes and even worse the money is wasted on bullshit.
              Originally posted by racrguy
              What's your beef with NPR, because their listeners are typically more informed than others?
              Originally posted by racrguy
              Voting is a constitutional right, overthrowing the government isn't.

              Comment


              • #8
                80% of places my wife and I buy online charge tax now. The only benefit to buying online anymore is the gas and time savings. Except on car parts of course.. sorry LRS I will not buy from you.
                www.dfwdirtriders.com

                Comment


                • #9
                  Originally posted by mikeb View Post
                  The state of illinois went after amazon for taxes, and amazon immediately dumped all of their illinois affliates, putting people of out work, and actually costing the state more lost tax revenue. Good move there illinois.

                  A SMART state would woo amazon - that irving warehouse probably generates a lot of tax revenue and provides a lot of jobs.

                  Short sighted, money grubbing politicians are going to kill the golden goose.
                  You know I am not sure about the Amazon warehouse but we have two major distribution hubs in our city and the amount of dollars the city actually gets off of them is very little. Now where ever Amazon is headquartered out of may see a nice chunk but not real sure about a hub. Biggest impact would be jobs in that area.

                  I do agree we are taxed to death though and somethings gonna have to change.
                  Whos your Daddy?

                  Comment


                  • #10
                    Originally posted by Broncojohnny View Post
                    Amazon announced they would pull out of Texas about two weeks ago. OOPS

                    I agree about taxes, we pay enough fucking taxes and even worse the money is wasted on bullshit.
                    Good for them. Im glad they will not be bullied by politicians who want more money. Government just has no idea how the private sector works

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                    • #11
                      I normally agree completely with Tx Attorney General Greg Abbott, but in this case, I think he was way off base with this. Amazon is doing exactly what anybody would have expected, throwing up the deuce and saying "see ya" to Texas and several hundred employees.
                      "It is in truth not for glory, nor riches, nor honours that we are fighting, but for freedom - for that alone, which no honest man gives up but with life itself."

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                      • #12
                        Amazon also got all the way up to signing a contract to lease 1,000,000 sqft from CBRE out in Lewisville, but backed out at the Zero Hour and moved the entire thing to Phoenix. I would have a sneaky suspicion they knew what was coming down the pipe from the Atty Gen. about the taxes and bailed on that as well.

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                        • #13
                          I keep hearing about this and it makes me laugh. Hey, you owe us $269 MILLION dollars, but we aren't going to show you anything stating why. When did the AGs office become a scavenger debt collector? People wonder why this country is in the shitter. Incompetent morons.

                          Comment


                          • #14
                            I thought Texas was friendly to businesses??

                            Comment


                            • #15
                              Originally posted by Sean88gt View Post
                              I thought Texas was friendly to businesses??
                              lol...stereotypically they are...but they see $270 million in their dreams with a current budget deficit. They are hungry

                              Comment

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