Tuesday, May 31, 2011

Texas Gov. Sides With Amazon, Kills Internet Tax Bill

Texas governor Rick Perry has vetoed a bill in that state which was aimed at Amazon.com and other online retailers, saying that the bill would have "unintended consequences" for the state. The bill, passed earlier this month by the Texas legislature, would have defined a tax "nexus" for online retailers who have a warehouse or distribution center in Texas. Perry, in a statement from his office, said that "My strong preference is to conduct a thorough policy discussion with Texas lawmakers, consumers, retailers and technology experts – and with other states and even the federal government – about interstate commerce and the structure of state sales taxes in the 21st century." The State of Texas has been in a battle with Amazon.com over $269M in uncollected sales taxes, with Amazon's Texas distribution center apparently the target--and victim--of the Texas bill.