State Tax Snapshot: States Reaping Benefits of Deferring Sales Tax for Amazon


Since 2011, Amazon has entered into agreements with several states. Under the typical agreement, Amazon promises to locate facilities within a jurisdiction in exchange for the state’s agreement to defer sales tax collection until a future tax year. These agreements would be supplanted or preempted if federal legislation is enacted.

Based on information gleaned from news reports from Bloomberg BNA and other news sources, some of the terms of Amazon’s agreements are as follows:

  •   California (will collect sales tax Sept. 2012. Amazon announced that the agreement reached in Sept. 2011 would result in 10,000 new jobs and $500 million in investments in the state)
  •   Indiana (will collect sales tax Jan. 2014. State estimates it will receive $20-$25 million per year under agreement)
  •   Nevada (will collect sales tax Jan. 2014 State estimates it will receive $16 million per year in new revenue)
  •   New Jersey (will collect sales tax July 2013. State estimates it will receive $30 million per year in new taxes. Building facilities in state will create 1,500 full-time jobs and thousands of construction jobs)
  • South Carolina (will collect sales tax Jan. 2016. Amazon will be required to create 1,500 full-time jobs. Agreement will reportedly benefit state in the amount of $231 million in its first year and $1.7 billion over 10 years)
  • Tennessee (will collect sales tax Jan. 2014. Will reportedly create 1,500 to 1,700 full time jobs)
  • Virginia (will collect sales tax Sept. 2013. State estimates it will create more than 1,350 new jobs)

  By Steven Roll

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