Wednesday, May 4, 2011

Amazon losing in the South

Forbes columnist Janet Novack has another great column about Amazon's bad business practices and how states are standing up to their bully tactics.
Tennessee may be the next state to stand up and demand that Amazon play by the same rules as our local businesses in collecting the sales tax as is their legal obligation.
Sen. McNally and Rep. Sargent, the chairs of the Senate and House Finance Committees, have introduced an amendment to SB0529/HB0136 to clarify that sales made by "persons" using or having any facility, sales room, warehouse, distribution center, etc., located in TN are subject to collecting the TN sales tax. This amendment is a direct challenge to Gov. Haslam's announcement last week that Amazon is receiving a special exemption from sales tax collection requirements. Today, the House Finance subcommittee approved the amendment to HB 136, and TFT applauds the move.
The exemption would effectively throw away $35 million in revenue from sales tax on Amazon purchases made in Tennessee. TFT has opposed this exemption and advocated for the Out-of-State Sales Tax Act (SB1489/HB1912) that would require any vendor selling more than $4,800 in goods annually to Tennesseans to collect and remit the sales tax on those purchases. The exemption and lack of legislation mandating sales tax collection for online and out-of-state purchases not only loses significant revenue, but also harms local businesses that are so important to job creation and community investment in Tennessee.
Please join TFT in contacting the members of the House and Senate Finance Committees who will consider this amendment and let them know you support it and wish to end special exemptions and tax breaks for corporations in Tennessee. We need revenue with justice for all Tennesseans.

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