Shutting Down Irving, Texas Distribution Center Over Tax Dispute

Posted Feb 13, 2011, Inc. (NASDAQ:AMZN) is shutting down a distribution center in Irving, Texas over an ongoing tax dispute. The distribution facility will be shut down on April 12 and will be cancelling plans to hire about 1,000 additional workers. Texas wanted $269 million from in past-due sales taxes. They sent the bill last October.

?Closing this fulfillment [distribution] center is clearly not our preferred outcome,? stated Dave Clark, the vice president of operations for the facility. ?We were previously planning to build additional facilities and expand in Texas, bringing more than 1,000 new jobs and tens of millions of investment dollars to the state, and we regret the need to reverse course.? The distribution center is near the Dallas/Forth Worth International Airport. The state of texas loses about $600 million annually in uncollected taxes from all Internet based sales.

[Dallas News]