McCormick: Amazon could be taxed in 2-3 years - WRCBtv.com | Chattanooga News, Weather & Sports

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McCormick: Amazon could be taxed in 2-3 years

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CHATTANOOGA (WRCB) – Amazon.com may one day pay a sales tax in Tennessee.

It is part of an ongoing push by some lawmakers to reverse a tax break, agreed upon by former Governor Phil Bredesen.

The deal allowed items sold through distribution center in Hamilton and Bradley counties to be exempt from state sales tax.

Wednesday, State Representative Gerald McCormick confirmed to Channel 3 Eyewitness News Amazon and the state are negotiating a deal that could result in Amazon paying taxes starting two or three years from now.

Former Governor Phil Bredesen made the deal with Amazon, allowing items sold through new distribution centers in Hamilton and Bradley Counties to be exempt from Tennessee sales tax.

In May, Governor Bill Haslam said he would stand behind the deal.

Amazon says if Tennessee agrees to keep the sales tax agreement, they could build as many as five fulfillment centers in the state, meaning thousands of jobs for Tennesseans.  The first two facilities are being built in Hamilton and Bradley County. A third fulfillment center has been announced in Lebanon, Tennessee.

In April of this year, Amazon.com closed one fulfillment center in Texas and stopped plans to build others in the state after the lawmakers there could not reach an agreement with the company over sales taxes.

As many as 6,000 Tennesseans could be employed by the internet giant if the company moves forward with plans to build five fulfillment centers in the state.

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