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Senate committee approves Amazon tax break
Posted: 04.19.2011 at 6:33 AM
Updated: 04.19.2011 at 8:05 PM
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Members of the Senate Finance Committee debate the Amzaon.com sales tax break Tuesday.
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COLUMBIA, S.C. (WACH, AP) -- South Carolina legislators have agreed to give online retail giant Amazon.com a break from collecting sales taxes after the company threatened to pull out of building a 1,200-job distribution center.

The Senate Finance Committee on Tuesday with a 15-5 vote approved the measure and said Amazon's customers will continue to be responsible for paying taxes on their own. The measure now moves to the Senate floor for debate.

The issue has put South Carolina at the center of Amazon's fight nationally to keep from collecting state sales taxes on goods sold online.

Lexington Senator Nikki Setzler says former Governor Mark Sanford entered into this deal with Amazon last year.

"It's not a question of whether people will like it or not," said Setzler.  "It's a question of what committment was made, the word of the state was given, the number of jobs and the people it will put to work in the economy that we're in."

Amazon has said without a state guarantee that it doesn't have to collect sales taxes on items sold in South Carolina it will stop construction on a 1,249-worker distribution center now being built in Lexington County.

Large and small competitors say they collect sales taxes and Amazon would get an unfair advantage if it doesn't.

"The question is would Amazon pull out because of the absence of this sales tax break, the answer is no, I don't think they would," said Don Weaver.

Weaver is president of the South Carolina Association of Taxpayers, which opposes the deal.

Related Stories...
Amazon hiring halted in Lexington Co. during tax break debate  
Bill would provide SC sales tax break for Amazon  
Amazon tax break: good or bad?  

South Carolina Gov. Nikki Haley doesn't support the deal but says she'll let it become law without her signature.

What do you think about bypassing subcommittee hearings and instead letting the Senate Finance Committee debate?  Do you think the public should have a say?

(The Associated Press contributed to this report.)

Amazon Incentives Poll
Does a sales tax exemption give Amazon an unfair advantage?

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