California’s top lawmakers appear lukewarm to Amazon.com's offer to hire 7,000 workers and build at least two giant distribution centers in exchange for the state holding off on collecting sales tax from the retailer until 2014, according to published reports.
Gov. Jerry Brown didn’t dismiss the Internet retailing giant’s offer, but he reiterated concerns about the financially troubled state losing an estimated $300 million in state revenue, according to the Los Angeles Times. Senate President Pro Tem Darrell Steinberg, D-Sacramento, said he is more interested in upholding the new law that went into effect July 1 and captures sales tax from purchases made by California customers.
Amazon’s offer to California is the retailer’s latest round of chicken with states, as it threatens to cut ties with their retailers and shut down facilities in states that try to tax that revenue stream.
Unlike many other states, Tennessee won’t force Amazon to collect sales taxes, spurring the company to announce the building of three more regional distribution centers in the state.