Arizona Bows To Amazon, Ditches Plan To Collect Sales Tax

Like the nation as a whole, Arizona’s state government is sending Amazon mixed messages on sales tax. Just weeks after news broke that Arizona had sent Amazon a $53 million bill for sales tax it failed to collect between 2006 and 2010, the state senate has killed a bill that would have required the company to start adding sales tax to orders.

According to the AP, the bill would have encompassed all online retailers, but was believed to have targeted Amazon. That’s a major reason the bill was shot down, because opponents said legislation aimed directly at a company or individual violated the state constitution.

Those who supported the bill said it was meant to protect physical retailers who find it difficult to compete with Amazon’s prices. Amazon, which has tangled with many a government over the issue of collecting state sales tax, is no doubt breathing a sigh of relief because it won’t have to cut a special deal like the one it did with Indiana in January.

Arizona Senate rejects bill on Amazon sales tax duty [AP via ABC 15]