Ariz. Senate rejects bill on Amazon sales tax duty

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PHOENIX (AP) -- The Arizona Senate has soundly rejected a bill that would have required Amazon.com to collect sales tax on purchases made by Arizona residents.

The bill was defeated Thursday on a vote of 20-8 despite retailers' argument that thousands of jobs at brick-and-mortar businesses are at stake.

The bill didn't identify Seattle-based Amazon by name. But it would have classified Amazon as an in-state retailer for tax purposes because a subsidiary has distribution centers in Arizona.

Amazon contends it doesn't have to collect sales tax on sales to Arizonans because the parent company doesn't have a physical presence in the state.

And a lobbyist for Amazon has said the bill would violate the Arizona Constitution's prohibition on bills targeting specific individuals or companies.