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Send to email | Texas: Amazon Lied To Us, Owes Us Millions in State Taxes in General | By Silicon el 09-May-2008 |
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A Texas state comptroller suggests that Amazon.com may have lied about not having a distribution center in the state--thereby dodging millions in Texas taxes. The Dallas Morning News:
The Texas
Comptroller's Office is investigating whether the Internet retail
behemoth, with sales last year of $14.8 billion, owes Texas possibly
millions of dollars in uncollected sales taxes on purchases made by its
customers in the state.
Seattle-based Amazon.com has been
operating a distribution center in Irving since 2006, giving it a
"physical presence" in Texas, a longstanding litmus test for when sales
taxes must be collected by an online or mail-order company...
The state's tax-collecting agency didn't know Amazon.com was operating a facility here until this week when The Dallas Morning News called
to ask why the online powerhouse wasn't charging Texas customers sales
taxes, said Robin Corrigan, the comptroller's team leader for sales tax
policy....
Over
numerous meetings, Ms. Corrigan said, Amazon officials spoke about
their compliance in states where they have a distribution center, but
they never included Texas in that group. "In conversations with Amazon,
they told me they don't have a distribution center in Texas," Ms.
Corrigan said.
"If it's determined that they are subject to
sales taxes, then they can be held liable for taxes, penalties and
interest," she said. The state is allowed to seek up to four years'
worth of back taxes, she said. R.J. DeSilva, a spokesman for the
comptroller, said the state has no idea the amount of taxes that
Amazon.com may owe and he wasn't sure how long the enforcement
section's investigation will take. "It will be thorough," he said.

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