Amazon Abandoning Tennessee over Sales Taxes

Amazon has recently threatened to scuttle its plans to build a pair of distribution centers in Tennessee.

This sad tale begins a couple years ago, when Amazon was invited by the Governor to build its newest distribution centers in the state. The new operations would employ around 1400 full time workers with another 5 thousand working part time.

At the time TN state law didn’t require Amazon to collect sales tax because it wasn’t a retail operation, but now it looks like that will change. Two TN state legislators are pushing for a bill to amend the tax laws so Amazon would have to pay because of the distribution centers.

Amazon won’t have it. It hasn’t started construction yet and if this law goes through, it has promised that never will.  “Here’s the thing: Sure, they can pass a bill and we can go and litigate it, and we’re confident that we can ultimately win,” said Amazon’s vice president for public policy, Paul Misener. “But why would we want to come to a state that made a commitment not to harass us in this way and then, once we get there, the very first thing we face is a lawsuit? It just doesn’t make any sense. Why not go to Indiana where we’re welcome?”

via Chattanooga Times Free Press

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