- 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

Intro to different retirement accounts

What does it mean to have a 401(k)? IRA?

View Course »

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

TurboTax Articles

What is a 1098-E: Student Loan Interest

If you're currently paying off a student loan, you may get Form 1098-E in the mail from each of your lenders. Your lenders have to report how much interest you pay annually. Student loan interest can be deductible on federal tax returns, but receiving a 1098-E doesn't always mean you're eligible to take the deduction.

What is Schedule F: Profit or Loss from Farming

If you earn a living as a self-employed farmer, you may need to include a Schedule F attachment with your tax return to report your profit or loss for the year. The Internal Revenue Service defines ?farmer? in a very broad sense?whether you grow crops, raise livestock, breed fish or operate a ranch.

Add a Comment

*0 / 3000 Character Maximum