Amazon to Add Tax, Bring Jobs to TN

MEMPHIS, Tenn. - Soon, Amazon.com will no longer be tax free for Tennessee shoppers. Governor Bill Haslam recently reached a deal with the popular internet retailer, which includes Amazon opening two new distribution centers in Tennessee.

"Amazon really wants there to be a national sales tax solution," Haslam said. "That's the ultimate answer because of all the internet sales tax that's not being collected, Amazon is just five or ten-percent."

Tennessee is the latest state to reach a deal with Amazon to allow taxation. In turn, $350 million will be poured into the state over the next three years. As part of the agreement the online retail giant will open two distribution centers, both set to put roughly 3,500 Tennesseans to work.

While some agree with money being put into the state's pockets, local retailers say the dollars don't make sense.

Eric Evans designs and creates most of the pieces sold in Sache Clothing and Design on South Main in Memphis. He's also part owner. Evans says the taxation agreement only puts a bigger dent in an already sunken economy.

"They might be creating 35-hundred jobs. Yeah, that's awesome. I'm all about it, but at the same time that 35-hundred jobs is still going to take business and customers from small business," he said. "When you have a conglomerate or monopoly like Amazon and they are not local mom and pop and they're charging sales tax that's being shipped out of the state, I got a problem with that. That's taking our customers."

The location of the distribution centers has not been announced. When asked if Memphis was in the running, Haslam says it's up to Amazon. He did say that in addition to the 3,500 jobs, up to 5,000 seasonal jobs would also be created. Haslam plans to seal the deal on the agreement next year.