Philip Diehl
unread,Jul 19, 2012, 4:03:30 PM7/19/12Sign in to reply to author
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to Scott Barman, coincollec...@googlegroups.com, Jimmy Hayes, Barry Stuppler
I think Texas has reached a similar deal with Amazon: something along the lines of Amazon opening a distribution site in the state and paying sales taxes going forward in exchange for Texas not going after back taxes.
There's a great deal more online sales tax revenue at stake than the Amazon revenue, and the states are desperate to get it. Plus the B&M retailers will keep pushing it. I have my doubts the Amazon deals with the states will slow momentum on the bill in Congress.
Best,
Philip
Sent from my iPhone
On Jul 19, 2012, at 1:29 PM, Scott Barman <
sc...@barman.ws> wrote:
> As part of the negotiations with the states, Amazon was granted other tax relief deals to build distribution sites in the states. Because the revenues go back to Seattle, where Amazon is based, the states will make more on the sales taxes than the business taxes.
>
> In New Jersey's case, Amazon was practically given an old Jamesway warehouse. Jamesway has been closed for over 10 years and their central Jersey warehouse has sat empty since Barnes and Nobel stopped using it about 8 years ago. The money the state will lose on property and other business taxes will be more than made up by payroll taxes for the jobs they will bring to the state and their sales in New Jersey.
>
> In Amazon's last 10-Q, it was reported that they will be testing same-day delivery of some items in some areas. It was indicated that the first tests will be in a Los Angeles suburb (no exactly location given) and New Jersey. If it works, Amazon could open more distribution centers in more states where they will be collecting taxes. If that happens, this issue would calm down until the states decide they need more money.
>
> For dealers who use the Amazon marketplace to supplement their sales, does Amazon's presence in New Jersey mean that marketplace vendors will also have to collect New Jersey sales taxes?
>
> Scott
>
> Sent from my iPad 2