Amazon Wins Tax Break, California Wins Jobs
Posted on Sep 24, 2011
Amazon.com struck a deal with California on online sales taxes Friday, agreeing to create thousands of jobs in exchange for a one-year reprieve from collecting state sales taxes.
The online retail giant agreed to begin collecting sales taxes in California by September 2012, though only if Congress doesn’t first pass a federal online sales-tax policy. Amazon, in return for the tax break, said it would create at least 10,000 full-time jobs and hire 25,000 seasonal workers by the end of 2015, a much better deal for California than Amazon had initially offered when talks began in June. —BF
The Wall Street Journal:
The compromise comes as Amazon fights efforts by California and other states to require it to collect sales taxes on purchases made via the site. Seattle-based Amazon has said it wants a federal law to cover the issue, rather than a state-by-state system.
Amazon had previously floated a compromise plan in California that would have it creating 7,000 full-time jobs in the state by 2015, while gaining a reprieve on the sales tax issue until 2014.
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