Amazon.com and State of Texas Cut a Deal: Amazon Will Pay Sales Taxes Starting in July

Posted on April 29, 2012

Bricks and mortars bookstores in Texas have something to celebrate. Amazon.com and the State of Texas have settled their differences over sales tax. The Austin-American Stateman reports that Amazon.com will begin charging sales tax to Texas beginning July 1, 2012.

Texas Comptroller Susan Combs and Amazon.com's Paul Misener cut a deal in which Amazon will invest $200 million in infrastructure and bring 2,500 jobs to the state over the next four years. It will build 13 distribution centers in Texas. In exchange, Texas is dropping its claim for $269 million owing in unpaid sales taxes (Amazon.com denies that it owes any back taxes.)

Texas consumers will not be happy that they have to start paying sales tax on everything from books to computers ordered from the online retailer. But state officials are thrilled at the hundreds of millions of dollars in sales taxes that are about to flow into the state's coffers.