- Days left
Iamazon fights Tennessee sales tax while building fulfillment centerst's no surprise that brick-and-mortar retailers continue to complain about the advantage that Internet vendors have: Not needing to collect sales tax in states where they aren't physically present.

However, for Amazon that advantage is even greater, as it has managed to beat the sales tax in states where it does have facilities. Now it plans to build two more in Tennessee and is working to secure agreement from the state so that it won't have to collect sales tax from Tennessee customers.

The company plans two new distribution centers near Chattanooga, at a cost of $139 million, that promise to provide 1,400 full-time and 2,000 seasonal jobs.Amazon has similar distribution centers in five other states, and has successfully avoided collecting sales taxes there by claiming that these are not retail locations but simply shipping points.

Amazon has asked the state of Tennessee for a similar arrangement. Local merchants there are protesting the request, however, claiming that granting it would be unfair.

Amazon has faced the same opposition in other states. Most notably, according to DailyFinance.com, Texas. It recently sent the company a bill for $269 million, representing uncollected sales tax from December 2005 through December 2009, with interest and penalties. The company has promised to vigorously fight the claim.

Look for more such conflicts, however, as many states fight to balance their budgets while suffering tax collection shortfalls.

Chances are, given the job climate, that Tennessee will accede to Amazon's request. But this doesn't mean that Amazon customers living in Tennessee wouldn't need to pay sales tax; it simply means that they would need to pay it directly to the state as part of their yearly income-tax filing.

Increase your money and finance knowledge from home

Building Credit from Scratch

Start building credit...now.

View Course »

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

TurboTax Articles

Are You Exempt From Health Care Coverage?

The Affordable Care Act, or Obamacare, is an individual mandate that requires all eligible Americans to have some form of basic health coverage by 2014. Those without insurance will receive a penalty when they file their tax returns ? that is, unless they have an exemption. TurboTax's Exemption Check can help you find out whether or not you qualify for an exemption.

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

Mortgage Refinance Tax Deductions

When refinancing a mortgage to get a lower interest rate or obtain more favorable loan terms, you're really just taking out a new loan and using the money to pay off your existing home loan. In general, the same tax deductions are available when you're refinancing a mortgage as when you're taking out a mortgage to buy a home.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

Rental Property Deductions You Can Take at Tax Time

Rental property often offers larger deductions and tax benefits than most investments. Many of these are overlooked by landlords at tax time. This can make a difference in making a profit or losing money on your real estate venture. If you own a rental property, the IRS allows you to deduct expenses you pay for the upkeep and maintenance of the property, conserving and managing the property, and other expenses deemed necessary and associated with property rental.

Add a Comment

*0 / 3000 Character Maximum