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News / Northwest

Amazon.com sues Texas for sales tax audit

The Columbian
Published: January 19, 2011, 12:00am

AUSTIN, Texas (AP) — Online retail giant Amazon.com is suing the state of Texas to produce the audit report on which the state based its demand for $269 million in uncollected sales taxes.

The state made the demand of the Seattle-based retailer in September, citing the sales tax audit. The Austin American-Statesman reports the comptroller’s office is withholding the audit report, backed by a Dec. 16 attorney general’s opinion that it was protected by attorney-client privilege.

The state contends that Amazon.com is on the hook for the sales taxes not collected on Texas online sales because Amazon has a distribution center in Irving, a Dallas suburb. Other companies with retail outlets or other types of physical presence collect sales taxes on its online sales.

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Information from: Austin American-Statesman, http://www.statesman.com

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