Texas sends Amazon.com a $269 million tax bill

NEW YORK Fri Oct 22, 2010 5:52pm EDT

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NEW YORK (Reuters) - Amazon.com Inc said Texas sent it a $269 million bill last month for uncollected sales taxes for purchases that its residents made through the online retailer.

Amazon.com Inc said in a filing on Friday that the state sent the company an assessment in September for uncollected sales taxes from December 2005 to December 2009, including interest and penalties.

Texas claimed Amazon should have collected sales taxes over that period.

"We believe that the State of Texas did not provide a sufficient basis for its assessment and that the assessment is without merit," Amazon said in the filing.

Amazon has found itself under attack over sales tax collection as states deal with their budget deficits. In April, Amazon sued North Carolina's department of revenue, claiming its demand for Amazon to turn over names and buying records of customers violated privacy laws.

(Reporting by Phil Wahba. Editing by Robert MacMillan)

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Comments (9)
Caraoji wrote:
I want to know who passed this into effect so I can vote them out of office in Texas.

Oct 22, 2010 10:59pm EDT  --  Report as abuse
edgyinchina wrote:
Maybe we’ll get lucky and Texas will follow through with its threats to secede from the union… Either that or they will cause a company to go bankrupt and 10,000 people will be thrown out of work.
And I thought Texas was a ‘tea party’ state that wanted smaller, less intrusive government…. I guess not…

Oct 22, 2010 11:52pm EDT  --  Report as abuse
GreatKills wrote:
Amazon should move South of the border into Mexico.

The States have become worse than the Federal Government.

Should we as a people pay 50% of our income in taxes (here in NYC) and then pay another 10% of our post-tax income on every purchase? We here in NYC have no choice, Unless you are a NYC or NYS retiree who pays ZERO NYS or NYC taxes on their pensions, one cannot afford to live here.

That is why we are moving either to Florida, Texas or to a non-State location in a few years.

Oct 23, 2010 7:33am EDT  --  Report as abuse
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