Forced to choose between having a fulfillment center in Texas and enjoying its tax-free status as an internet retailer, Amazon choose to close its fulfillment center. This sounds like a win for Amazon customers, a lose for Texas taxpayers, and probably a draw for Amazon itself.
The Alliance for Main Street Fairness, a lobbying group for small businesses working to eliminate Internet sales tax loopholes, criticized Amazon’s decision to close the Irving center.
“Texas retailers collect and remit sales taxes every day â?? whether the sale happens in a store or online,” said Danny Diaz, a spokesman for the group. “Amazon.com was asked to play by the same rules, and has responded by eliminating hundreds of Texas jobs. Amazon could have chosen to collect the sales tax as Texas retailers do, but instead they opted to protect their special sales tax loophole to the detriment of hardworking families.”