The New York Times Reports: A few weeks ago, Mr. Perry signed into law an online sales tax measure that the state says will raise $60 million over the next five years.
Grover Norquist’s influential organization, Americans for Tax Reform, calls the measure a dreaded "new tax." Mr. Perry opposed it as a stand-alone measure, but this summer it was tucked into a must-pass bill during a legislative session that otherwise saw deep budget cuts.
State lawmakers passed an amendment during the special session to force online retailers like Amazon to collect sales taxes. The rule takes effect on Jan. 1, 2012, but the online giant is fighting to keep things as they are.
The state wants all online retailers to collect and remit the taxes, but there's no question who's first in line. Amazon has a distribution center in Irving. Because of that presence, state Comptroller Susan Combs sent a letter to the world's biggest online retailer in 2010 saying it owed Texas more than a quarter of a billion dollars in back taxes. The Seattle-based company refuses to pay the tab, saying it wasn't required to collect and remit those taxes under current law. A related tax audit of the company is "in the administrative hearings process," according to Combs' representatives.
To protect its interests, Amazon has threatened to shut down its operations in Texas (and has taken even more stringent actions in other states, including California). During the session, it also dangled a carrot, offering to invest $300 million in five or six warehouse and distribution centers in the state, employing 6,000 people, if lawmakers would let the company operate for four and a half years without collecting sales taxes from customers. Gov. Rick Perry liked the idea. The Legislature never bought it.
Online retailers will have some time to learn the new tax code. The law takes effect on Jan. 1, 2012. Businesses that meet the state's definition of engaging in business in Texas will have to send sales tax reports like storefront businesses, and will be subject to audits.
The state estimates the provision could bring in an estimated $16 million in general revenue for the next biennium.
Obviously the Texas legislator thinks $16million in revenue for the public sector over two years is more valuable than $300million over four and a half years for the private sector. If Rick Perry does not carefully read bills as Governor of Texas, what makes him think he will read bills better as President of the United States?
This Tax could prove to be detrimental to Texas's economy in the private sector. Will Rick Perry pass similar tax increases if elected President?
Sources:
http://www.texastribune.org/texas-legislature/82nd-legislative-session/day-25-state-struggles-collect-online-sales-taxes/
http://www.usnews.com/opinion/blogs/scott-galupo/2011/08/26/rick-perry-the-flip-flopper
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