Amazon will have to collect sales taxes in Tennessee if the company has warehouses there, according to an opinion released Tuesday by Attorney General Robert Cooper. Although he didn't mention Amazon, Cooper ruled "current state law already requires retailers that open distribution facilities or warehouses in Tennessee to collect sales taxes on their customers," the Tennessean reported, adding that the opinion may give state lawmakers more power.
"That makes it a little more difficult, if they (lawmakers) have to green light everything," said Governor Bill Haslam, who is trying to resolve the controversy sparked by his predecessor, Phil Bredesen, whose administration assured Amazon that opening three distribution centers in the state would not trigger laws requiring the company to collect sales taxes.
While Haslam has agreed to uphold the promise, he has also pressured Amazon to come up with a compromise solution along the lines of those negotiated in California and South Carolina. "We continue to have discussions with Amazon," Haslam said. "Hopefully, we can come up with something that works for everybody sooner rather than later."
Cooper's opinion "also says state revenue officials have the right to interpret tax laws as they see fit when the situation is not clear-cut. That would appear to give the Haslam administration some room to leave Amazon's tax status unchanged until he reaches a compromise with the company, but he said it also might force him to take a deal to the legislature for approval once reached," the Tennessean wrote.
