Haslam: New Amazon center doesn't obligate it to pay sales tax

Haslam: New Amazon center doesn't obligate it to pay sales tax

February 11th, 2011 by Mike Pare in Local - Breaking News

Tennessee Gov. Bill Haslam said today that online retailer Amazon's new distribution center going up in Hamilton County shouldn't obligate it to pay state sales taxes.

"The larger question is should Internet sales be taxable to the state whether it's Amazon or anything else," he said. "I think all states will have to look at that."

He said that the fact Amazon is building a distribution center here "shouldn't trip their obligation. What if they've built it in South Carolina, then they're not charging it then either."

Haslam, speaking after an economic development and jobs roundtable at the University of Tennessee at Chattanooga, said there is the bigger question of Internet sales taxes that needs to be answered.

"We're going to have to address that with all the states working together," he said.

Amazon is building distribution centers in Chattanooga and Bradley County.

For full story, see Saturday's Chattanooga Times Free Press.