The burden of state sales tax continues to plague Amazon. Groups of states hold Amazon to different standards when it comes to collecting the tax. While some disagreements end amicably — such as the company’s January deal with Indiana that it will have to start collecting state sales tax in 2014 — other states are a bit more confrontational.
According to The Wall Street Journal, Arizona billed Amazon for $53 million in uncollected state sales tax from 2006 to 2010. Amazon reps say the invoice, sent in November, is bogus. Arizona’s invoice echoes a similar maneuver by Texas, which hit Amazon up for $269 million. Amazon’s reaction? Shutting down a Dallas warehouse.
At some point it would be helpful for all parties if online retailers and state governments worked out a uniform way to handle the state tax issue. Don’t count on that happening any time soon.
Arizona to Amazon: About That Sales Tax… [The Wall Street Journal]