Topping an ongoing debate regarding state sales tax collection on internet-based transactions, the Austin American Statesman is reporting that Amazon.com is suing the state of Texas over a $269 million bill issued to the online retail giant.
Texas issued Amazon the bill last October, claiming the company failed to pay sales taxes from its Irving, Texas, distribution warehouse from December 2009 to December 2010. Seattle, Washington-based Amazon quickly responded that it would "vigorously defend" itself.
After receiving the payment request, Amazon petitioned the state comptroller's office to provide "information related to the audit and the assessment," and later complained that "auditors were not forthcoming with an explanation."
Officials have not yet responded to the suit, but entrepreneurs looking to incorporate in Texas can expect the back-and-forth to continue as no real national consensus has been reached over how state sales tax should be structured from online-based transactions.
To add to the matter, Texas is currently struggling to tackle a budget shortfall that could range up to $27 billion over the next two years - a dilemma stemming primarily from the state's weak collection of sales and property tax.
Tags : incorporation news, taxes, tx
Posted: Jan 20th, 2011