Amazon to collect Tenn. sales tax, add 2,000 jobs

AP News
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Posted: Oct 06, 2011 1:55 PM
Amazon to collect Tenn. sales tax, add 2,000 jobs

Gov. Bill Haslam has announced a deal with Amazon.com to begin collecting Tennessee sales tax in 2014 and adding 2,000 full-time jobs at new distribution centers.

Haslam said the agreement, announced Thursday in Nashville, will balance the needs of Amazon.com Inc. and the state's brick and mortar retailers.

Amazon said it will invest $350 million in Tennessee. The site of two new distribution centers has yet to be decided.

Amazon previously announced distribution centers in Cleveland, Chattanooga and Lebanon. That agreement had provided Seattle-based Amazon an indefinite waiver on collecting state sales tax.

Pressure on the Haslam administration to come to better terms increased after Amazon agreed to begin collecting state sales taxes in South Carolina and California in the coming years.