Monday, May 2, 2011

Amazon.com Pullback Hits South Carolina

The decision last week by Amazon.com to pull the development of a new distribution center in South Carolina, which resulted in the loss of 1,249 jobs in Midlands, SC, appears to be cascading to other businesses in the state. According to a report in a local South Carolina paper, two other companies -- Bloom Energy and Altgen -- have decided to forgo locating operations in the state, on fears that the state will not honor tax exemption deals there. The state legislature last week decided to not give Amazon.com sales tax incentives. South Carolina is one of a number of states which have struggled with Amazon.com over its refusal to collect local sales taxes from local buyers. Amazon.com is fighting a multi-front war with states over its sales tax collection issues. States have been looking at Amazon.com and other online retailers as a potential cash cow, as they struggle for new sources of revenue.