Monday, July 2, 2012

Amazon Starts Collecting Taxes From Texas Residents

Have you been buying online from Amazon.com to skirt Texas sales taxes? Due to a deal between the e-commerce giant and the state, it looks like those days are over. Amazon started collecting sales taxes for residents over the weekend, as part of a deal reached with Amazon over uncollected back taxes at the e-commerce retailer. That deal, which resolves a long running dispute between Amazon and the state, also calls for Amazon to set up distribution centers in the state, creating 2,500 jobs, and which will result in $200M in capital investments by the e-commerce firm. Texas had been aggressively pursuing Amazon over its past tax bills, after the firm had initially refused to collect sales taxes in the state.