Last week, Amazon served notice that it will be closing its facility in Texas in April. It did have plans to expand in Texas, but now claims Texas's nexus laws are causing it to withdraw from Texas all together.
Now, I am normally a strong advocate for taxpayers; however, in this case, based on the facts and current Texas nexus standards, I believe Amazon has nexus and should be collecting sales tax.
With that said, based on other articles on the web, the Texas Governor is unhappy with the Texas Comptroller's position and Amazon's withdrawal from Texas. Therefore, maybe Texas will consider changing its nexus standard just to make Amazon happy? If it doesn't change its standard, but relieves Amazon from sales tax collection responsibilities, what does that mean for other similarly situated taxpayers?
What do you think?
Check out these articles for more info:
Texas Tribune
Columbia Journalism Review
Business Insider
1 comment:
I am a citizen of Texas and I think that Amazon should have to collect sales tax since much of its competition collects sales tax. I paid sales tax and the retailer collected when I bought a computer over the Internet from Dell, an HP printer from Office Max and books from Barnes & Noble. Why should Amazon be treated differently? If I did not pay sales tax on an item, then technically I am liable for ause tax on it (however the state does not bother getting the use tax from the smaller businesses just the large ones).
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