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Keep in mind that they're already sale-tax exempt in Texas. They don't have any locations in Texas, therefore they don't have to charge sales tax. They want to

by evan_ 15y ago

Keep in mind that they're already sale-tax exempt in Texas. They don't have any locations in Texas, therefore they don't have to charge sales tax. They want to open a facility in Texas, but they don't want to have to start charging sales tax. Doesn't hurt to ask.

daniel_solano 15y ago
Actually, they have had a facility in Texas for some time that they were planning on expanding. Last year, the comptroller demanded they pay back something on the order of $600M in back taxes and penalties.
- evan_ 15y ago
  oh, then it doesn't make any sense.
pcarmichael 15y ago
Without a presence in Texas, Amazon is not obligated to collect sales tax. However, the customer must then pay a 'use tax', which is the same rate as the sales tax: http://www.window.state.tx.us/taxinfo/sales/faq_use.html http://www.window.state.tx.us/taxinfo/sales/faq_use.html What the public in general seems to miss is that the tax revenue is due one way or another - either Amazon collects or customers self pay. Most of the public who are not business owners do not realize they need to self pay - it is neither enforced nor made obvious that one needs to do so. So instead of making the public aware of 'use tax' and trying to enforce it, the Texas legislature is trying to change the definition of an in-state presence to include independent subsidiaries, affiliates, etc. Then by doing so, the government can force the merchant to collect the taxes owed for them. The first 'internet sales tax' bill was passed by the legislature but vetoed by the governor. Similar language was added to an omnibus spending bill, which is much more likely to survive.
dangrossman 15y ago
They have a distribution center there as well as the Woot offices/warehouse in Dallas... as an outsider without all the facts, my first impression is that Amazon has a significant physical presence in Texas and really should be collecting sales tax already.

by evan_ 15y ago

daniel_solano 15y ago

Actually, they have had a facility in Texas for some time that they were planning on expanding. Last year, the comptroller demanded they pay back something on the order of $600M in back taxes and penalties.

evan_ 15y ago
oh, then it doesn't make any sense.

pcarmichael 15y ago

Without a presence in Texas, Amazon is not obligated to collect sales tax. However, the customer must then pay a 'use tax', which is the same rate as the sales tax: http://www.window.state.tx.us/taxinfo/sales/faq_use.html http://www.window.state.tx.us/taxinfo/sales/faq_use.html What the public in general seems to miss is that the tax revenue is due one way or another - either Amazon collects or customers self pay. Most of the public who are not business owners do not realize they need to self pay - it is neither enforced nor made obvious that one needs to do so. So instead of making the public aware of 'use tax' and trying to enforce it, the Texas legislature is trying to change the definition of an in-state presence to include independent subsidiaries, affiliates, etc. Then by doing so, the government can force the merchant to collect the taxes owed for them. The first 'internet sales tax' bill was passed by the legislature but vetoed by the governor. Similar language was added to an omnibus spending bill, which is much more likely to survive.

dangrossman 15y ago

They have a distribution center there as well as the Woot offices/warehouse in Dallas... as an outsider without all the facts, my first impression is that Amazon has a significant physical presence in Texas and really should be collecting sales tax already.