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This article was published on June 22, 2011


Amazon to Texas: give us a tax exemption, and we’ll give you 5,000 jobs

Amazon to Texas: give us a tax exemption, and we’ll give you 5,000 jobs
Joel Falconer
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Joel Falconer

Joel Falconer is the Features Editor at TNW. He lives on the Gold Coast, Australia with his wife and three kids and can sometimes be found g Joel Falconer is the Features Editor at TNW. He lives on the Gold Coast, Australia with his wife and three kids and can sometimes be found gaming or consulting. Follow Joel on Twitter.

Amazon is seeking a deal with the state of Texas that would have the company exempt from sales taxes for the next four and a half years, in exchange for bringing 5,000 jobs to the state.

Amazon also intends to build distribution centers worth $300 million, where the 5,000 employees would work. Estimates provided by the state suggest that Amazon owes $269 million in sales tax in Texas alone.

Amazon’s proposition has been met with condemnation from the Main Street Alliance, a group comprised of brick and mortar retailers who generally resent the success of online retailing and its impact on their businesses, who call Amazon tax evaders.

Texas isn’t the only state that has been approached by Amazon with a deal like this. South Carolina recently accepted a similar proposition.