Amazon Leaves South Carolina Over Tax Exemption

Amazon has left South Carolina after they lost a legislative bid for a tax collection exemption for a one-million-square foot planned distribution center which would have brought an estimated 1,249 jobs to the area.

Paul Misener, Amazon Vice President for Global Public Policy said:

“As a result of today’s unfortunate House vote, we’ve canceled $52 million in procurement contracts and removed all South Carolina fulfillment center job postings from our (Web) site,”

South Carolina Representatives rejected the tax break 71-47. The partially finished center will be completed and then mothballed.

Techflash has stated that Amazon’s “our way or the highway” strategy means Amazon thinks it will easily find other alternatives to fulfill  the company’s need to open more distribution centers. It remains to be seen if this strategy will work in the long run considering that Amazon currently doesn’t collect sales taxes in half of U.S. states. Amazon has played hardball in states where Amazon doesn’t  collect sales taxes from those sales. In March Amazon announced it was closing its affiliate program in Illinois, a day after the governor signed a law requiring Amazon and other online retailers to collect sales taxes on goods sold in the state.

According to Brian Flynn, Executive Director of the South Carolina Alliance for Main Street Fairness, stated in The State :

“Amazon has told lawmakers across the country that evading sales tax collection is not central to their business model. Tonight (Wednesday) they’ve shown their true colors and proven they’ll go to any length to protect their unfair advantage. These bullying tactics have been seen across the country… I want to thank the South Carolina House for standing with small business owners who support our local companies.”

Ironically enough the Main Street Fairness group is backed by Wal-Mart, a company known for hampering the livelihoods of small businesses in small towns everywhere. In the end affiliates aren’t the only ones burned in these state-to-state proxy battles between Amazon and Wal-Mart.

2 Responses to Amazon Leaves South Carolina Over Tax Exemption

  1. MediaFiche says:

    I hate reading this about my home state. More jobs. larger job infrastructure, and a better education system are all things South Carolina badly needs. It seems there was a lot of politics involved here.

    • Brownscottu says:

      yes for the rapid growth we need to have many more companies need to start up in this region govt need to take initiative for this by providing support in their side then only these region is going to be developed well with good infrastructure and facilities.

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