…in the Lone Star state?
Taking a tip from the Empire State, here’s a report that The State of Texas Comptroller’s Office is currently investigating whether the presence of an Amazon.com-run distribution facility in the Dallas suburb of Irving means the online retailing giant has a physical presence in the state. If the Comptroller’s Office determines that Amazon.com does have nexus, the retailer would be responsible for collecting and remitting sales tax for purchases made by Texas residents and potentially would be liable for back taxes.
Amazon.com’s website notes that it runs fulfillment facilities in Kentucky, Pennsylvania, Kansas, Texas, Nevada, Delaware, Arizona, and Indiana. The company lists customer service centers in North Dakota, West Virginia, and Washington. At present, Amazon only collects sales tax in Kansas, Kentucky, North Dakota, and Washington. Delaware does not charge sales tax.
Bookweb, a publication of the American Booksellers Association has the story.
Related article
Overstock.com Throws New York Affiliates Overboard to Avoid Sales Tax
See: http://bits.blogs.nytimes.com/2008/05/14/overstockcom-throws-new-york-affiliates-overboard-to-avoid-sales-tax/index.html?ref=technology
Amazon
Amazon could sell off the distribution centers to a separate company and then contract for their service.
Not worth it
It would be more expensive to set up an maintain a subsidiary such as that (assuming that it would avoid the nexus problem, which it would most likely not) than to simply collect and remit the sales tax to the taxing authorities.
well, crud…
Well, will be watching this closely–the price of our Amazon supplied library books may just be about to go up…
No most likely not
The prices are not going up, if Amazon has to collect sales tax. The prices will stay the same, the tax would be what caused the apparent price increase.
Why would your library pay sales tax? If it is a public or non-profit is should be exempt from paying sales tax.
just move
Maybe Amazon.com should just move its HQ to Dubai like another fine American company…
Taxes? Texas? It’s Unamerican to charge/collect/pay them!!
Businesses have a responsibility to their shareholders
A business has a responsibility to their shareholders to achieve the best return on investment. The tax laws in Dubai make doing business there a wise financial move.
Insofar as Halliburton’s core business is in the energy sector and specifically in the exploration and production of oil and gas. It makes good financial sense to have corporate offices locates where core operations are centered.
Halliburton is, and will remain a US corporation, incorporated in Deleware, and subjet to US law.
It is not at all uncommon to move corporate offices offshore for favorable tax treatment. Stanley Works, the people who make hammers and other hardware (Stanley tools) did it, and saved $30MM in taxes (they still pay $80MM) . Tyco. Ingersoll-Rand, Accenture, Cooper Industries, ACE Ltd (which bought Cigna’s P&C lines in 1999), Fruit of the Loom, and many others have moved the headquarters (if only through paperwork and a small staff offshore) to more tax advantageous locales.
This is not dissimilar to the reason that companies incorporate in Deleware; to lessen corporate governance and tax burdens.
If you could open an office in Florida and pay someone five hundred bucks to run it for the year in order to save $10K in taxes wouldn’t you?
The oppressive tax burden and onerous US Tax Code are the root cause of these corporate inversions. If Congress were simply able to stop taking and spending our money ( yes, as share holders it is our money) there would be no need for these companies to re-establish themselves in jurisdictions more favorable to corporate growth.
(N.B. I do not directly hold a position in any of these companies, I have not made a diligent effort to deterime if I hold them through mutual funds, or through trusts or other beneficial ownership. This is not investment advice.)