Amazon.com will start collecting sales taxes from Texas customers this summer and agreed to make capital investments of $200 million and create 2,500 jobs in the state over the next four years, Comptroller Susan Combs announced this morning. In return, the state will drop its efforts to collect back sales taxes from the company.
The online retailing giant hasn’t been collecting sales taxes from customers in Texas (and in many other states), citing a provision in the law that exempts companies without a physical presence in the state from taking part. The comptroller filed a $269 million tax lien against the company, pointing to a warehouse operation in Irving and saying it should have been collecting and remitting taxes from December 2005 to December 2009.
That’s been in dispute for more than a year.
And just like that it no longer is. Seems like a fair settlement, as long as Amazon holds true to its hiring promise. I agree with Comptroller Combs and Amazon that this issue needs to be dealt with by Congress, and have been saying so all along. We’ll need a better Congress first, of course, but be that as it may, this is theirs to fix. For now, kudos to both parties for getting this done. A statement from Combs’ office can be found here.