Tax & Accounting Blog

South Carolina Just Says No to Amazon Tax Break

Indirect Tax, ONESOURCE, Sales and Use Tax, Sales Tax Nexus May 3, 2011

In what is turning out to be a bad week for on-line giant Amazon.com, the South Carolina legislature has rejected a bill that would have extended tax breaks to the retailer. On Wednesday, April 27th the House voted 71 – 47 against H4091 which would have exempted Amazon from collecting sales taxes in South Carolina for five years.

Amazon had struck a deal with the Commerce Department under the former Governor to build a distribution center in the state if South Carolina would in return guarantee that they would be exempt from the sales tax for 5 years. According to the Augusta Chronicle Amazon vice president Paul Misener has stated that the company has “canceled $52 million in procurement contracts and removed all South Carolina fulfillment center job postings from our site.”

To read more on this story: Legislators Reject Amazon Tax Break