After Long Dispute With State Over Tax Bill, Amazon to Close Irving Distribution Center

For close to three years, Amazon and the state have long been at odds over a distribution facility in Irving: Texas wants the Seattle-based books-and-everything-else-ever-seller to pay sales tax for doing business there, while Amazon has long insisted it doesn't have to. The whole thing came to a head at the end of last year, when, as Amazon noted in a Securities and Exchange filing:

In September 2010, the State of Texas issued an assessment of $269 million for uncollected sales taxes for the period from December 2005 to December 2009, including interest and penalties. The State of Texas is alleging that we should have collected sales taxes on applicable sales transactions during those years. We believe that the State of Texas did not provide a sufficient basis for its assessment and that the assessment is without merit. We intend to vigorously defend ourselves in this matter.

Depending on the amount and the timing, an unfavorable resolution of this matter could materially affect our business, results of operations, financial position, or cash flows.

The Associated Press has gotten its hands on a memo from the veep of operations that says: We're outta here.
Amazon's Dave Clark writes that the center will close April 12 due to Texas' "unfavorable regulatory climate." It was not immediately clear how many employees work at the facility.

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Robert Wilonsky
Contact: Robert Wilonsky