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COLUMBIA, S.C. (WACH, AP) -- Amazon has halted the hiring process for a warehouse operation it plans to build in Lexington County while it awaits a sales tax break from state lawmakers.

The State newspaper reported Thursday that Amazon froze the hiring for 11 management positions for the warehouse it plans in Cayce that could employ more than 1,200 people.

The online retailer wants an exemption from state sales taxes for South Carolina residents who purchase products. Other retailers have complained that would give Amazon an unfair advantage.

Spokesman for the South Carolina Main Street Alliance Brian Flynn says it's not fair that small businesses have to collect sales tax at the point of purchase while Amazon is exempt from doing so.

"Consumers will be held liable if they don't report the sales tax from their online purchases," Flynn explains.

Some business and community leaders are standing behind the plan.

"I know small businesses are up in arms because they are concerned about it, but actually, it's going to feed our small businesses," says Lexington Mayor Randy Halfacre. 

Lexington County lawmakers introduced proposals Wednesday to give Amazon a five-year exemption on collecting taxes on sales to state residents.

The sales tax collection exemption that's been at the heart of a dispute with online retailer Amazon.com has been introduced in the South Carolina Legislature.

Legislation filed Wednesday in the House and Senate says Amazon won't have to collect retail sales taxes on goods handled at the distribution facility being built in Lexington County.

The sales tax break was on the books but about to expire when Amazon negotiated with the state to build a $100 million distribution facility that would create 1,249 permanent jobs. Economic development leaders agreed to revive the sales tax exemption. Legislators and Gov. Nikki Haley balked at those plans when Amazon's competing retailers complained.

Amazon says it will back out of building the facility without the break.

What do you think about the tax break?  Does it give Amazon an unfair advantage?  Vote in our poll and leave a comment below to weigh in.

(The Associated Press contributed to this report.)