Amazon looks at N.J. for expansion, asks for sales tax holiday | Economy | -- Your State. Your News.

May 22nd
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Amazon looks at N.J. for expansion, asks for sales tax holiday

amazon021012_optBY BOB HOLT

Powerhouse online retailer is negotiating a deal that could bring over 1,500 full-time jobs to New Jersey.

Amazon wants to open two warehouses in New Jersey, but they are looking for a 22-month holiday from collecting sales tax in the state.

According to an Associated Press report in the Washington Post, the online company doesn’t have to collect the 7 percent sales tax that is required in New Jersey like the regular stores that have a physical presence.

New Jersey could earn $200 million or more a year in sales taxes from Amazon if they open their warehouses. However, Amazon is requesting a sales tax holiday through 2014 or later.

State Assembly majority leader Lou Greenwald, involved in the negotiations with Amazon said, according to CBS Philly, “Amazon is looking to come to New Jersey and create that nexus which would put a pin in the calendar where they would begin to pay that tax on all their sales.” Greenwald believes the Amazon warehouses would be along interstates near New York and Philadelphia.

"It's a bad deal for New Jersey, no matter what," Senator Ray Lesniak( D-Union) said, according to The Day. "We're giving up hundreds of millions of dollars in revenues we should be getting and we're also putting at risk jobs in our retail centers and central business districts."

Lesniak said that Amazon is free to take advantage of tax incentive programs available in New Jersey.


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