NASHVILLE – Senators grilled Amazon.com representatives on Tuesday about the Internet retailer’s assertions the state cannot make it collect sales taxes from in-state customers despite company plans to open two distribution centers in Southeast Tennessee.
Lawmakers also peppered them with questions about a sales-tax collection exemption deal the company struck with outgoing Gov. Phil Bredesen in 2010. His successor, Gov. Bill Haslam, has said he is honoring the deal.
Senate Finance Committee members’ skepticism came as members held a hearing on legislation sponsored by the panel’s chairman, Sen. Randy McNally, R-Oak Ridge.
The bill seeks to force Amazon to collect sales taxes, which can total 9.75 percent in state and local levies in Tennessee. Senate action was delayed until next week. A companion bill is scheduled to come up in the House Finance subcommittee today.
Earlier, McNally alluded to the fact that Amazon plans to hire some 1,500 full-time workers and several thousand seasonal employees in its planned distribution centers in Hamilton and Bradley counties.