Amazon Controversy over Sales Tax
Many states have new laws on the books which require online retailers to pay sales tax to that state if they have a physical presence there. The state of Tennessee is currently offering online retail giant Amazon an exemption from their state sales tax in exchange for the company opening two distribution centers in the state.
Local brick and mortar retailers are outraged over what they see as a decidedly unfair advantage being given to Amazon. State officials however are more concerned with the estimated 1400 full-time jobs and 2000 + seasonal employees which the online giant will bring to the state.
Amazon’s response to the complaint is that the company will not be operating a retail outlet in the state. The sales are done over the internet and handled by Amazon’s headquarters. The facilities in Tennessee will just be fulfillment centers shipping out the products, and would therefore be exempt from the tax.
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