[quote=bearishgurl]
barnaby, Amazon is obviously building its distribution centers in CA on the cheapest land they can get … which makes sense (to hold their prices down). Any “beleaguered area” in the “armpit” of CA with 50%++ of distressed properties would be thrilled to have a new employer move in, offering the locals 750-1000 new jobs.
As it should be. If that’s the deal they made with Jerry, then so be it. Imagine how much sales tax the (small) state of TN collects (from their own residents and a poss % of other states) with all those online distribution centers located within minutes from the one of the country’s main UPS shipping hubs![/quote]
I’m a little confused by parts of this, so I’ll just add the way it works and move on from there. An Amazon distribution center does generate sales tax revenue for the state in which it’s located, to the extent that distribution center ships within the state. Products shipped out of state don’t create sales tax revenue for the local state. So Tennessee doesn’t get sales tax for stuff shipped from the local Amazon distribution center to another state.
But irrespective of that, Amazon has in place agreements with at least 8 states that it already charges sales tax for all deliveries within those states, regardless of where the products are shipped from. California and Tennessee among them. There’s another handful of states it has agreements to do so in the future.
