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May 13, 2008

Amazon.com May Owe Texas Millions in Uncollected Sales Taxes

Heads up, Texans -- the sales tax break you've been getting by buying online at Amazon.com may be in jeopardy.

The Dallas Morning News reports that officials from the state comptroller's office are investigating whether Amazon's Irving-based distribution center establishes a "physical presence" in Texas, which would put the online retailer under a 1992 Supreme Court ruling that allows states to collect sales taxes from out-of-state retailers under those conditions.

Amazon has operated the North Texas facility since 2006, but officials from the comptroller's office told the Morning News they were not aware of that until the paper called to ask why Texas customers weren't being charged sales taxes. Officials have since launched an investigation into whether Amazon owes the state money from uncollected taxes.

There's no word on how much, if any, Amazon may end up owing the state, but Comptroller Susan Combs said in December that Texas lost $541 million in sales taxes on Internet and mail-order sales during 2006. Amazon reported $14.8 billion in sales last year.

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Did the Dallas Morning News just tattle on us to the teacher?

 
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