Texas comptroller of public accounts Susan Combs and Amazon announced an agreement that will resolve the uncollected sales tax issue between the two. Texas has said that Amazon owed the state $269 million in sales taxes that it failed to collect from state residents on purchases made thorugh the e-tailer. Under the agreement, Amazon promised to create over 2,500 new jobs and make at least $200 million in capital investments in the state over the next four years, and beginning July 1 of this year will start collecting and remitting Texas sales tax.
The deal ends all sales tax issues between Texas and Amazon, which was in the negotiation phase earlier this week. It's not yet clear what the investments will be, but Amazon has announced plans to open 13 new fulfillment centers this year. In a statement, Combs said the deal "is an important step in leveling the playing field in Texas," but also called on Congress to enact legislation for a unified sales tax system. Amazon v-p of global public policy Paul Misener agreed. “We strongly support the creation of a simplified and equitable federal framework, because Congressional action will protect states’ rights, level the playing field for all sellers, and give states like Texas the ability to obtain all the sales tax revenue that is already due,” Misner said.
