Texas Now Among States Looking To Internet Taxes To Close Budget Gaps | The AP

by | Jun 20, 2011 6:25pm
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Posted to: Government 2.0, Tech Biz

Connecticut took a lot of criticism in recent weeks after Amazon.com decided to announced it was suspending its affiliate sales program here because of the state legislature’s support for charging sales tax on Internet purchases. But now Texas — super business friendly Texas — has followed suit.

Read more of this Associated Press story on NPR here.

In a new development Monday, the Austin American-Statesman reported that Amazon appears to be trying to negotiate a deal.

According to documents obtained by the American-Statesman, Amazon is promising to bring more than 5,000 jobs and $300 million in capital investments to Texas over the next three years if in exchange lawmakers there grant Amazon a 4 1/2-year exemption from collecting tax on online sales. Read more from the Statesman here.

And, check out some of our previous coverage and analysis of the same issue in Connecticut here, here, and here, and listen to our discussion on the topic with tax lawyer Daniel L. Gottfried here. And here is DRS Commissioner Kevin Sullivan’s statement suggesting “remote sellers can run but not hide” following Amazon’s decision to terminate its Connecticut affiliates.

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