Amazon.com is showing a willingness to compromise on the sales tax collection issue, with the latest development occurring in Tennessee.
According to a report by the AP, Tennessee Gov. Bill Haslam has announced a deal with the Seattle online retailer whereby the company will start collecting sales tax in the state in 2014.
As part of the deal, Amazon plans to move forward with the construction of two distribution centers at a cost of $350 million that will employ 2,000 full-time workers in the state.
“We are proud that this worldwide brand has chosen to make a significant investment in Tennessee and is committed to expanding its presence here,” said Haslam, according to a report by the TriCities Media Group. “This agreement balances meeting the needs of the company and the needs of the state by providing certainty to Amazon and brick and mortar retailers inTennessee regarding sales tax.”
Late last month, California Gov. Jerry Brown entered into a similar deal with Amazon, but in that case Amazon could start collecting sales tax as early as next year.
UPDATE: Amazon.com issued this statement to GeekWire, provided from vice president of global public policy Paul Misener:
“We’re grateful to Governor Haslam and the legislative leadership for their commitment to Tennessee jobs and development, which will allow Amazon subsidiaries to create at least 3,500 full-time jobs and $350 million in investment in the state. We’re committed to working with Tennessee and Congress to pass federal legislation as soon as possible and, as analysts have noted, we’ll continue to offer customers the best prices, regardless of whether sales tax is charged.”