Amazon, Texas reach deal to settle sales tax spat

AP News

4/27/2012 10:12:45 AM - AP News
AUSTIN, Texas (AP) — Online retailer is doing an about-face in Texas, saying it will bring jobs back to the state and start paying sales tax barely a year after closing a distribution center in a dispute over the levies.Amazon and Texas Comptroller Susan Combs said Friday they had an agreement for the company to bring at least 2,500 jobs and $200 million in capital investments. The company will begin collecting and paying sales tax on July 1.The company said last year it was closing a Dallas-area distribution center and scrapping plans to expand Texas operations. A few months later, the state Legislature approved legislation to close a loophole that allowed online retailers to avoid paying sales tax in Texas.Combs says the deal settles all tax disputes with Amazon.