July 1 Is The Deadline
Amazon.com inc. didn't risk much when it agreed in April to create 2500 jobs and invest $200-million in distribution centers. According to records released this week if the company fails to follow through, it has agreed to pay one million dollars to the state.
Under the agreement Amazon began collecting sales taxes from their Texas customers on July 1.
Amazon.com Inc. has lately begun collecting sales tax in Texas, and within a year and a half will be charging sales tax in 13 states. Analysts appear divided as to whether this is positive or negative.
The naysayers state that this will negatively affect Amazons' price advantage over brick and mortar competitors, while those in favor uphold that Amazon could now benefit from being able to open distribution centers in more states, thus reducing shipping cost and improving efficiency.
