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Area Development - Site Selection, Facility Planning and Workforce Development

Amazon.com Closing Irving, Texas, Distribution Center Due to Tax Dispute

02/11/2011
Amazon.com will close a Dallas-area distribution center and cancel expansion plans in Texas after a tax dispute with the state, the Associated Press reports. The company will close the Irving, Texas, facility on April 12 as a result of the state's "unfavorable regulatory climate," according to an email from Amazon Vice President of Operations Dave Clark to employees.

"We regret losing any business in Texas, but our position hasn't changed: If you have a presence in the state of Texas, you are required to pay sales tax, just like any other business that has a presence in Texas," said Allen Spelce, a spokesman for Texas Comptroller Susan Combs.

Texas asked the company to pay $269 million in unpaid sales taxes last year. The state says Amazon must pay sales taxes that the company has not paid on in-state online sales. Other states have filed lawsuits against Amazon for sales taxes not paid on online purchases made in their states.

Amazon spokeswoman Mary Osako would not say how many Irving employees would be laid off as a result of the closure.

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