This is criminal.
The fact that Amazon and QVC have distribution warehouses and employs workers in SC establishes nexus and they are required to collect and remit sales tax.
The state legislators are so desperate for creating jobs, even warehouse jobs, they have colluded with Amazon and QVC to develop a special tax avoidance scheme and supporting legislation.
If any of the legislators or immediate family own any stock or have engaged in the trading of Amazon, QVC stock through their own accounts, pensions or otherwise at any time since 2005 they should be prosecuted.
I believe Sam's club, Costco and all retail consumers in SC have been unfairly charged sales tax and should file a class action lawsuit demanding sales tax be eliminated for all businesses in SC and for retroactive refunds of all sales taxes paid to SC from 2005.
In Fact, all retailers in SC should demand equal treatment and that they too be granted an exemption from sales tax in the state of SC.
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New governor in South Carolina sitting on the sidelines as Amazon.com builds a warehouse in the state and seeks sales-tax break.
By Amy Martinez
Seattle Times business reporter
Four months ago in South Carolina, then-Gov. Mark Sanford praised Amazon.com as a welcome addition to the state's business community.
Amazon agreed to build a $100 million warehouse and create about 1,250 permanent jobs in South Carolina. To Sanford, it showed the state's efforts to create a business-friendly climate were paying off.
But South Carolina's new Republican governor, Nikki Haley, takes a different view. Haley opposes a sales-tax break for Amazon that was part of an economic-incentives package worked out by Sanford's Commerce Department.
Whether the Seattle-based company carries through on its plans to open the distribution center by the end of this year could depend on what state lawmakers do next. So far, no legislators appear to want to touch it.
"The state has been put in a terrible spot, forced to choose between not wanting to be known as a state that doesn't keep our promises, and a governor who strongly believes South Carolina's first responsibility is to take care of the businesses we already have and not give preferential treatment," Haley spokesman Rob Godfrey said in a statement.
In 2005, legislators passed a bill stating out-of-state businesses with big distribution centers do not need to collect sales taxes just because they move goods in and out of South Carolina. The law helped persuade QVC to open a warehouse in Florence, but it expired in June.
The state's Department of Commerce promised Amazon in December it would make its "best efforts to obtain legislation to renew and extend" the sales-tax break. Although the Legislature convened in early January, no such legislation has been introduced.
Amazon's stance against collecting sales taxes is coming under fire in more and more states as traditional retailers, including big-box chains Walmart and Best Buy, complain this gives the Internet giant an unfair price advantage.
Their protests come at a time when many states such as South Carolina face severe budget shortfalls and e-commerce companies like Amazon enjoy record profits.
Under a 1992 Supreme Court decision, Amazon does not have to collect a state's sales tax unless it has a local physical presence. As a result, Amazon collects sales taxes in only a handful of states: Kansas, Kentucky, North Dakota, New York and Washington.
Johnny Jeffcoat, a councilman in Lexington County, S.C., where work on Amazon's new warehouse is under way, said he spent one day this week introducing company officials to state legislators. Jeffcoat said he thinks legislators will come around and pass a sales-tax break for Amazon.
He worries if they don't, Amazon will pull out of South Carolina. He cited Amazon's decision to close a Texas warehouse this month after state officials came after the company for four years of unpaid sales taxes.
"They can have a distribution center here or in a neighboring state," Jeffcoat said. "If they decide to leave, we get none of their jobs and no spinoff business. It seems like we have a lot to lose."
An Amazon spokeswoman did not return an email or phone call seeking comment Friday.
Local backers of the deal say they have plenty of time because the state legislative session runs through June 2. Also, they note that while Haley opposes a tax break for Amazon, at least she promises to not stand in the way.
"If the Legislature chooses to pass this bill, the governor will not veto it," Godfrey said.
He went on to say, "So let's be very clear: This is not an incentive package the governor would have agreed to, and this situation will never happen on Governor Haley and Commerce Secretary Bobby Hitt's watch."
Haley, who won election last fall with tea-party support, posted a message Thursday on her Facebook page thanking Steven Tanger, president and CEO of Tanger Factory Outlet Centers, for investing $43 million of his own dollars to redevelop a shopping center in the Hilton Head area.
"No handouts," she added, "over 350 jobs. That's America!"
Amy Martinez: 206-464-2923 or amartinez@seattletimes.com
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The fact that Amazon and QVC have distribution warehouses and employs workers in SC establishes nexus and they are required to collect and remit sales tax.
The state legislators are so desperate for creating jobs, even warehouse jobs, they have colluded with Amazon and QVC to develop a special tax avoidance scheme and supporting legislation.
If any of the legislators or immediate family own any stock or have engaged in the trading of Amazon, QVC stock through their own accounts, pensions or otherwise at any time since 2005 they should be prosecuted.
I believe Sam's club, Costco and all retail consumers in SC have been unfairly charged sales tax and should file a class action lawsuit demanding sales tax be eliminated for all businesses in SC and for retroactive refunds of all sales taxes paid to SC from 2005.
In Fact, all retailers in SC should demand equal treatment and that they too be granted an exemption from sales tax in the state of SC.
-----------------------------------------------------------------------
New governor in South Carolina sitting on the sidelines as Amazon.com builds a warehouse in the state and seeks sales-tax break.
By Amy Martinez
Seattle Times business reporter
Four months ago in South Carolina, then-Gov. Mark Sanford praised Amazon.com as a welcome addition to the state's business community.
Amazon agreed to build a $100 million warehouse and create about 1,250 permanent jobs in South Carolina. To Sanford, it showed the state's efforts to create a business-friendly climate were paying off.
But South Carolina's new Republican governor, Nikki Haley, takes a different view. Haley opposes a sales-tax break for Amazon that was part of an economic-incentives package worked out by Sanford's Commerce Department.
Whether the Seattle-based company carries through on its plans to open the distribution center by the end of this year could depend on what state lawmakers do next. So far, no legislators appear to want to touch it.
"The state has been put in a terrible spot, forced to choose between not wanting to be known as a state that doesn't keep our promises, and a governor who strongly believes South Carolina's first responsibility is to take care of the businesses we already have and not give preferential treatment," Haley spokesman Rob Godfrey said in a statement.
In 2005, legislators passed a bill stating out-of-state businesses with big distribution centers do not need to collect sales taxes just because they move goods in and out of South Carolina. The law helped persuade QVC to open a warehouse in Florence, but it expired in June.
The state's Department of Commerce promised Amazon in December it would make its "best efforts to obtain legislation to renew and extend" the sales-tax break. Although the Legislature convened in early January, no such legislation has been introduced.
Amazon's stance against collecting sales taxes is coming under fire in more and more states as traditional retailers, including big-box chains Walmart and Best Buy, complain this gives the Internet giant an unfair price advantage.
Their protests come at a time when many states such as South Carolina face severe budget shortfalls and e-commerce companies like Amazon enjoy record profits.
Under a 1992 Supreme Court decision, Amazon does not have to collect a state's sales tax unless it has a local physical presence. As a result, Amazon collects sales taxes in only a handful of states: Kansas, Kentucky, North Dakota, New York and Washington.
Johnny Jeffcoat, a councilman in Lexington County, S.C., where work on Amazon's new warehouse is under way, said he spent one day this week introducing company officials to state legislators. Jeffcoat said he thinks legislators will come around and pass a sales-tax break for Amazon.
He worries if they don't, Amazon will pull out of South Carolina. He cited Amazon's decision to close a Texas warehouse this month after state officials came after the company for four years of unpaid sales taxes.
"They can have a distribution center here or in a neighboring state," Jeffcoat said. "If they decide to leave, we get none of their jobs and no spinoff business. It seems like we have a lot to lose."
An Amazon spokeswoman did not return an email or phone call seeking comment Friday.
Local backers of the deal say they have plenty of time because the state legislative session runs through June 2. Also, they note that while Haley opposes a tax break for Amazon, at least she promises to not stand in the way.
"If the Legislature chooses to pass this bill, the governor will not veto it," Godfrey said.
He went on to say, "So let's be very clear: This is not an incentive package the governor would have agreed to, and this situation will never happen on Governor Haley and Commerce Secretary Bobby Hitt's watch."
Haley, who won election last fall with tea-party support, posted a message Thursday on her Facebook page thanking Steven Tanger, president and CEO of Tanger Factory Outlet Centers, for investing $43 million of his own dollars to redevelop a shopping center in the Hilton Head area.
"No handouts," she added, "over 350 jobs. That's America!"
Amy Martinez: 206-464-2923 or amartinez@seattletimes.com
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