Arizona Lawmakers Back Bill to Require Amazon Tax Duty
Posted:
Amazon.com says it would be illegal but Arizona legislators are moving ahead with a bill that would require the online retailer to collect sales tax on purchases by state residents.
A bill pushed by brick-and-mortar merchants and unanimously endorsed by a Senate committee Wednesday would classify Seattle-based Amazon as an in-state retailer for tax purposes because a subsidiary has distribution centers in the state.
"The state is effectively subsidizing a discount equal to the sales tax. As a retailer, I just want an equal playing field," said Lance Muzslay, owner of three athletic-shoe stores in Phoenix suburbs.
Amazon contends it doesn't have to collect sales tax on sales to Arizonans because the parent company doesn't have a physical presence in the state, and an Amazon lobbyist told the Senate committee the bill would violate a state constitutional prohibition on bills targeting specific individuals or companies.
"This bill applies to one company and one company alone and should be rejected on that basis," said the lobbyist, Don Isaacson.
Isaacson also urged lawmakers to simply wait for passage of national legislation creating a uniform and simplified system for collecting sales taxes.
On the other side of the issue, Arizona Retailers Associations members support the legislation, including "big box" stores such as Target and Best Buy and smaller merchants.
The bill doesn't identify Amazon by name, and retailers said it's both legal and fair, with thousands of jobs at stake.
"This is about jobs. When retailers sell more goods, they employ more people. It's as simple as that," said Michelle Ahlmer, executive director of the Arizona Retailers Association.
Arizonans are required by law to pay sales tax on online purchases, but few do and there has been no enforcement push until lawmakers last year decided to put a reporting requirement on individuals' income tax return.
Returns filed this spring for 2011 will be the first covered by that reporting requirement, but the bill and a separate bill pending in the House would repeal the requirement.
Amazon said last year that the addition of its fourth "fulfillment center" in the Phoenix area would take its Arizona work force over 3,000.
But Isaacson said Wednesday the company has a permanent Arizona work force of 5,000, with pay starting at $35,000 and providing health benefits and stock options. "These are good jobs," he said.
Amazon recently disclosed in its annual report that the Arizona Department of Revenue has issued the company a bill for $53 million for uncollected sales tax and interest. The company has said it is contesting the assessment.
Friday, May 24 2013 6:16 PM EDT2013-05-24 22:16:27 GMT
When workers installed one of the much-heralded bike-sharing stations on West 22nd Street near 10th Avenue, they put it right in front of the brownstones.
When workers installed one of the much-heralded bike-sharing stations on West 22nd Street near 10th Avenue, they put it right in front of the brownstones, impacting the entrances for homeowners and tenants.
Friday, May 24 2013 6:09 PM EDT2013-05-24 22:09:59 GMT
New York State has 17,000 highway bridges. There are some bad ones. The Tappan Zee Bridge, for example, is set to be replaced because of aging infrastructure.
New York State has 17,000 highway bridges. There are some bad ones. The Tappan Zee Bridge, for example, is set to be replaced because of aging infrastructure.
Friday, May 24 2013 5:33 PM EDT2013-05-24 21:33:47 GMT
New Jersey Transit bus riders will soon have a new way to get across the Hudson River: by boat. The agency is partnering with New York Waterways, which will provide ferry service to customers. The
New Jersey Transit bus riders will soon have a new way to get across the Hudson River: by boat. The agency is partnering with New York Waterways, which will provide ferry service to customers. The
Authorities say police divers will be back in the Hudson River to resume the search for a man who went into the water while fishing from an Albany-area dock.
Authorities say police divers will be back in the Hudson River to resume the search for a man who went into the water while fishing from an Albany-area dock.
Friday, May 24 2013 4:44 PM EDT2013-05-24 20:44:00 GMT
The unofficial start of summer is being met with not-so-perfect beach weather. Many beach communities had been hoping for good weather this Memorial Day weekend following the destruction caused by superstorm Sandy.
The unofficial start of summer is being met with not-so-perfect beach weather. Many beach communities had been hoping for good weather this Memorial Day weekend following the destruction caused by superstorm Sandy. The Fox 5 weather team is calling for sunny skies on Sunday and Monday.
Connecticut is making $5 million available immediately to cities and towns to help reimburse them for school safety and security upgrades following the massacre at Sandy Hook Elementary School in Newtown.
Connecticut is making $5 million available immediately to cities and towns to help reimburse them for school safety and security upgrades following the massacre at Sandy Hook Elementary School in Newtown.
Friday, May 24 2013 4:02 PM EDT2013-05-24 20:02:22 GMT
WCS photo
Coney Island's famed New York Aquarium, devastated by Superstorm Sandy, will partially reopen Saturday, May 25, 2013. The Wildlife Conservation Society on Friday showed members of the media parts of
Coney Island's famed New York Aquarium, devastated by Superstorm Sandy, will partially reopen Saturday, May 25, 2013. The Wildlife Conservation Society on Friday showed members of the media parts of
Friday, May 24 2013 3:40 PM EDT2013-05-24 19:40:02 GMT
The mastermind of a botched robbery that resulted in the death of an NYPD officer has been convicted of murder. Nelson Morales was also convicted Friday of burglary in the December 2011 incident that
The mastermind of a botched robbery that resulted in the death of an NYPD officer has been convicted of murder. Nelson Morales was also convicted Friday of burglary in the December 2011 incident that
Friday, May 24 2013 3:29 PM EDT2013-05-24 19:29:58 GMT
The National Park Service is ending unpaid leave for U.S. Park Police officers earlier than expected. National Park Service Director Jonathan B. Jarvis said the furloughs will end on June 3, after just
The National Park Service is ending unpaid leave for U.S. Park Police officers earlier than expected. National Park Service Director Jonathan B. Jarvis said the furloughs will end on June 3, after just
Friday, May 24 2013 2:46 PM EDT2013-05-24 18:46:22 GMT
A Bronx teacher says her language lesson was lost in translation when she was fired for calling a student "Negro" — though she claims she was simply using the Spanish word for the color "black".
A Bronx teacher says her language lesson was lost in translation when she was fired for calling a student "Negro" — though she claims she was simply using the Spanish word for the color "black".
