Tennessee Opposes Amazon Tax Break

By Richard Gibson
Jan 30 2011

Amazon has asked for a tax break in the state of Tennessee which has angered residents and other retailers that operate in the area.

The issue at hand is the idea that those in live in Tennessee and buy from Amazon would have to pay sales tax. This is what Amazon wishes to change because they feel it would negatively affect the bottom line for the massive company and sales in the state would drop.

Under current laws, the companies in the US must charge sales tax in the state where the company resides. Amazon recently opened a distribution center in Tennessee and now the state has said that they will have to charge sales tax to all residents.

But in the past Amazon has been able to negotiate a deal that at least puts a hold on the sales tax for buyers if not abolishing it all together. The main issue is the number of jobs that Amazon brings to the table when it opens a distribution center in one of the many states where they are located.

As of right now the state lawmakers have not denied the application but they are facing some heavy opposition from the smaller retailers around the state. This opposition is led by the retailers that also sell online and must charge their customers sales tax for all in-state purchases that are made.

Tennessee lawmakers have said that they will take the matter under advisement.