Amazon and Texas: Round 2?
A few months ago, Texas made an audit assessment against Amazon for $269 million in uncollected sales tax. Texas claims Amazon has nexus in Texas because it has a distribution facility in Texas. Amazon claims having a distribution facility is not enough to have nexus.
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 TribuneColumbia Journalism ReviewBusiness Insider
My name is Brian Strahle and I hope you find this blog informative and useful. My personal mission is to fix and prevent state tax problems. I provide companies with leverage (knowledge, judgment and advocacy) so they can operate across state lines with peace of mind.
I am a multistate tax consultant and I serve clients across the U.S. from my office in Washington D.C. For more info, visit my website: www.leveragestateandlocaltax.com
Because state and local taxes are deceptively simple and endlessly complicated.