Amazon To Charge Sales Tax in Texas

Writing by 1call on Wednesday, 30 of April , 2008 at 5:21 pm

Amazon customers will begin to be charged sales tax after the company learned that because they have an operating distribution center in Texas they fall under the sales tax collection statutes. The company has had a warehouse in Texas since 2006 but being an online company did not believe it was to charge sales tax for customers in Texas. Amazon had over 14 billion in sales last year but it is not clear how much of those purchases went to Texas customers. What was interesting was the comment from Texas comptrollers office. According to Susan Combs the state lost an extimated $500 million in state sales tax on Internet sales which are the same as mail order sales they have complained about for years. The flaw with this thinking is that money is brought into Texas and pay wages to employees who ship all those products. Those employers pay taxes and those employees contribute to our great economy every time they have the money to make a purchase. If we continue to think in this manner and not realize the great impact companies like Amazon bring t our economy then soon companies will overlook Texas as a favorable place to do business.

Fortunately the state is large, there are a lot of bright people who completely understand that the residual taxes and economic benefit in our state contribute far greater than the tax charged for a book.

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Category: Shorts