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Our long Amazonian nightmare may finally be over

Negotiations are in progress to get Amazon to pay something like its fair share.

Amazon.com is negotiating with the state to start paying Texas sales taxes on online sales and to create some jobs in the state, reviving talks that fell apart at the end of last year’s legislative session, sources involved in the conversations said today.

A deal would apparently end the state’s attempts to force the company to collect sales taxes. Comptroller Susan Combs accused the company of ducking $269 million in sales taxes it should have paid from December 2005 to December 2009. The company threatened to close a warehouse operation in Irving that it said employed about 120 people.

The comptroller’s office had no immediate comment about the talks.

“There are meetings going on, but I can’t tell you much else about it,” said state Rep. John Otto, R-Dayton. He’s been involved in the online sales tax issue at the legislative level, but said he isn’t directly involved in current negotiations.

This week, the company reached agreement in a similar dispute in Nevada and is reportedly negotiating sales tax agreements with other states. No hard estimates are available on what such an agreement would bring into the Texas treasury. In its lawsuit, the state put the annual number at about $70 million. In Nevada, where the sales tax ranges up to 8.1 percent, officials expect the Amazon deal to bring $16 million annually into state coffers.

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“As long as they’ll start collecting sales taxes this fiscal year or within the next four or five months, that’s really what’s important,” Otto said. “We’ve got to level this playing field.”

I presume this would also settle the ongoing litigation between Amazon and the state. This has been a long time coming, and I don’t really have anything to add other than I agree with what Rep. Otto says. See here for prior blogging on the subject.

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2 Comments

  1. [...] Susan Combs’ office, she and Amazon said they’ve agreed on sales taxes, a thorny issue in Texas and [...]

  2. [...] Statesman raises a great question about the settlement deal between Amazon and the state of Texas that will get the online retailer to start collecting [...]

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