The new law codifies a deal Amazon reached with state officials that was announced in October 2011 (195 DTR H-1, 10/7/11 ). The deal and codifying legislation stem from efforts by state and local government officials to encourage Amazon to construct new facilities in Tennessee.
The new law provides that a company that invests at least $350 million and creates a minimum of 3,500 jobs in the state by Jan. 1, 2014, will be exempt from collecting and remitting sales and use taxes until that date. The exemption becomes void if those and certain other conditions are not met, or if federal legislation covering such transactions is enacted prior to 2014.
According to fiscal notes accompanying H.B. 2370, Amazon is the only taxpayer that meets the requirements outlined in the legislation.
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