Requiring Amazon to charge state sales tax has sent many consumers looking for other tax-free options, according to a new study for the National Bureau of Economic Research.
In 2012, Texas Comptroller Susan Combs reached an agreement with Amazon to collect sales tax on items sold to Texans. Because Amazon has a "physical presence" in Texas - its distribution center in Irving - Combs said Amazon should have been collecting state sales tax on online sales. She agreed to drop her demands for $269 million in taxes if Amazon promised to create 2,500 jobs and spend $200 million in capital investments.
But after Amazon started charging sales tax in Texas, its sales in this state dropped by 11 percent, according to researchers.