Amazon Tries Jobs Bribe Over Tax Law

BOSTON ( TheStreet) -- Amazon.com ( AMZN) is offering to open a distribution center and bring 7,000 jobs to California is exchange for a reprieve from a new Internet sales tax law until 2014, according to a report by The Sacramento Bee

Amazon made the proposal in a meeting late Tuesday with legislative staffers, The Sacramento Bee reported Thursday, citing sources with knowledge of the offer. Amazon wants a reprieve from the new law, which requires online retailers to collect taxes from California customers, until sometime in 2014.

Amazon has refused to collect the tax on orders made by California customers and has pushed for a ballot-box showdown in California next June. Democratic leaders are pushing for a stronger bill of the Internet tax that Amazon would be unable to challenge, The Sacramento Bee notes.

Amazon has used the threat of new jobs with varied success in other states in order to avoid collecting the Internet sales tax. The company has struck separate deals in South Carolina and Tennessee to avoid taxes but must create jobs. In Texas, however, Amazon closed a distribution center after the state passed an online sales tax bill.

-- Written by Robert Holmes in Boston.

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