- Days left

Amazon Fights to Keep Sales Tax Advantage in Tennessee

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.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

TurboTax Articles

5 Tax Tips for Single Parents

Filing taxes as a single parent requires coordination between you and your ex-spouse or partner. Usually the custodial parent claims the child as a dependent, but there are exceptions. A single parent is allowed to claim applicable deductions and exemptions for each qualifying child. Even though you claim your child as a dependent, she may still have to file her own tax return if she has income, such as from an after-school job.

Affordable Care Act Decoded

The health care reform law known as the Affordable Care Act may directly affect your tax liability. Many taxpayers are familiar with the requirement that most Americans either carry health insurance or pay a tax penalty. But that's just one provision, and knowing what else is in the law can help you avoid surprises come tax time.

Cost of Taking the Wrong Tax Deductions

Taking the wrong tax deductions can cost you time and money. If you're depending on a tax refund, a tax return that is improperly filed can keep you waiting for a long time. You may also get back less than you expected. If the Internal Revenue Service suspects errors or requires proof of deductions, you may be asked to provide back-up documents to prove your numbers and amend the return. "If the IRS requires further information," advises Bill Symons, president of Computer Accounting Services in Oswego, N.Y., "You'll receive an official request by mail. Normally the situation is easily rectified, but it can delay refunds by up to 10 to 11 months."

5 Steps to Navigate the Healthcare Marketplaces

To navigate the Health Insurance Marketplace, you have to know what you want from a health plan. Have your previous plan handy to make comparisons, as well as household and income information. If this is your first health plan, be aware of your needs and know your tax situation. Eligibility depends on the size of your family and combined income from all sources.

Add a Comment

*0 / 3000 Character Maximum