Texas has granted VAT refunds to businesses on goods and services they buy, but apparently he never allowed to stop collecting taxes from their customers. The Texas Retailers Association blasted the deal Amazon proposed as a carve-out that would leave Malta and brick stores state at a disadvantage for the giant Internet retailer.
Gov. Rick Perry wants the agreement and has contacted lawmakers to promote it, a spokesman said. And statutory changes that would require is in the hands of the House and Senate negotiators that are putting the finishing touches on a fundamental piece of legislation to balance the State budget.
Legislators have balked, and what could have been a team effort between the Governor and top tax collector of the State Comptroller Susan Combs, is complicated by a previous skirmish on Amazon and Mr Perry's veto of legislation that would have moved in technology procurement shop MS. Combs.
Last year, ms. Combs hit Amazon with a tax bill of $ 269 million, saying that its distribution center in Irving establishes legal imposing a footprint to collect sales taxes from customers of Texas. The company is in disagreement, and Mr Perry, asked the case this year, took the side of Amazon and said that he wouldn't have the turnover of the company.
Online, mail and other direct sellers without physical operations in the State, or "nexus", did not collect sales tax from their customers in Texas. During the regular legislative session, lawmakers approved an amendment to the sales tax laws that would have established the nexus to any company owning more than 50 percent of an affiliate or subsidiary in the State. Wouldn't even be related to the main activity of the company. A company out for match with anything in Texas, but a bait shop on the coast would be on the hook for the collection of sales tax.
Mr. Perry vetoed the Bill, saying that the State should wait until there was more talk of "Interstate Commerce and the structure of State sales taxes in the 21st century", before changing the law.
Lawmakers were already in the special session, when he announced his veto. Republican Representative John Otto, of Dayton, responded by adding VAT to the supply of a tax critic Bill needed to balance the State budget in 2012-13. That raises the question of Mr Perry's veto if the tax bill for the delivery of kill.
Meanwhile, Amazon has made his statement. Mr. Perry likes because it would, in the words of Mark Miner, his spokesman, "create more jobs than the number of caterpillars or Toyota" — two previous captures title economic deals in Texas.
Amazon has done a similar deal, in similar circumstances, with the last month in South Carolina. In Texas, in its latest iteration of the proposal, the company agreed to create 6,000 jobs full-time with full health care benefits for the next three years and to invest 300 million dollars of new warehouse and distribution centers during that same period.
In return, would agree was left Amazon go four and a half years without collecting sales tax from their customers in Texas. "Collection" is the keyword, because Amazon's customers still have the money if the company collects or not. According to the law of the State sales tax is collected from customers, vendors and turn to the State. The proposed deal, Amazon has agreed to print the amount of tax due on customer invoices and confirmations by email, but it would be up to customers and then, of their own free will, pay state what they should. The deal, as proposed, would expire in early 2016.
Curiously, ms. Combs said that the deal Amazon would cost the State anything. On the one hand, he had a pending tax case against the company that says its inability to put the cost of sales tax of about 70 million dollars annually. And the Bill of Mr Otto would have brought in 16 million dollars over the next two years, by official estimate of Ms. ra Combs. But giving the company a break for the next two years is a tribute, apparently.
"Our estimate of the revenue does not assume this will to Amazon or voluntarily or be forced to raise taxes during the biennium 2012-13, then there is no loss estimation by the agreement," said a spokeswoman for combs through e-mail.
Left out if the deal would make it harder to 269 million dollars in back to collect taxes.