Thursday, February 10, 2011

Report: Amazon To Shutter Dallas Distribution Center Over Tax Fight

Seattle-based Amazon.com is reportedly shutting down the firm's distribution center in Dallas, Texas, in a causualty of the firm's fight with the state over collecting sales taxes. Amazon opened up a distribution center in Texas in 2005. Texas is one of several states which are battling Amazon.com over uncollected sales taxes. Amazon.com has refused to collect sales taxes from residents in a number of states, which has raised the ire of those firm's tax collections departments and legislators. Texas is looking to collect $269M in uncollected sales taxes, plus penalties and interest, from Amazon.com. Texas is not the only state hungry to make up declining state tax collections by targeting Amazon.com and other e-commerce firms; the firm has faced similar issues in Colorado, New York, and North Carolina, among others.