Friday, April 8, 2011

Tennesseans Want Answers on Backroom Amazon Deal

TFT members have been signing our petition (www.fairtaxation.org) asking Amazon to follow the law and collect sales taxes now that they have plans to locate two distribution centers in the state. Local businesses and retailers around the country have joined the call to end these special deals for the corporate giant that gives them an even further advantage and loses valuable revenue for states like Tennessee. Now our legislators are heeding the call and asking the Department of Revenue and Gov. Haslam to reveal what has been promised to Amazon and at what cost to Tennessee.
Thanks to the Chattanooga Times Free Press for this great article on the issue:


Several influential state lawmakers say they want to know what sales-tax break Tennessee is offering Amazon to entice the Internet-retail giant to build two distribution centers in Hamilton and Bradley counties.

“I think a number of people, representatives, would like to see what transpired, how it’s going to work, what are the consequences of this particular situation — and what consequences there could be for the future,” said House Finance Committee Chairman Charles Sargent, R-Franklin.

Traditional brick-and-mortar retailers contend the state has already or plans to exempt Seattle-based Amazon from collecting sales taxes on Tennesseans’ purchases from the company as part of the state’s incentive package.

“We want competition to be fair,” said Roland Myers, president and CEO of the Tennessee Retail Association. “Tennessee’s consideration of a plan to exempt Amazon from collecting state sales tax does the exact opposite and retailers across the state are justifiably upset.”

House Speaker Emeritus Jimmy Naifeh, D-Nashville, said he supports Sargent’s effort.

“I still haven’t found out how we’re going to go about giving them this excuse from [collecting] taxes. That’s the first thing I want to find out.”

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