Amazon announces new Indiana distribution center

Mar 27, 2012

(AP) -- Amazon.com Inc. announced plans Tuesday for a $150 million warehouse and distribution center in southern Indiana after state officials gave the online retailer two more years before it has to start collecting sales taxes from customers.

Seattle-based Amazon said the center in Jeffersonville is expected to open this fall and could have some 1,000 employees by 2015.

Construction began last month at the site just north of Louisville, Ky., but the company and state and local officials had previously declined to confirm Amazon's involvement with the project.

Work on what will be Amazon's fifth large facility in Indiana started just weeks after Republican Gov. Mitch Daniels announced in January an agreement under which Amazon would begin collecting the state's 7 percent sales tax from customers in the state in 2014.

Many Indiana retailers - and some Republican legislators - objected to the deal, saying it put traditional stores at a price disadvantage and that the tax collections should begin sooner.

The state struck a deal with Amazon in 2007 under which the would open its first warehouse in Indiana with the promise that state lawmakers wouldn't immediately push for online sales tax collection.

"This is Amazon's fifth Indiana facility, and the company is employing thousands of Hoosiers," Daniels said in a statement announcing the Jeffersonville center. "We're grateful for every one of those jobs."

Amazon currently has distribution centers in Indianapolis and the suburban communities of Whitestown and Plainfield, but the company hasn't given details on how many workers it has at those sites. Amazon spokeswoman Mary Osako said the 1,000 positions would be full-time, year-round jobs but she would not disclose the potential pay range for the new employees.

The Indiana Economic Development Corp. said it will give Amazon up to $2 million in performance-based tax credits and up to $300,000 in training grants based on the company's job-creation plans for the Jeffersonville center.

The warehouse is being built at an industrial park on the site of the former Indiana Army Ammunition Plant, where military munitions were made until the Pentagon closed it in 1992.

"Indiana is home to thousands of Amazon employees, and we look forward to bringing additional jobs to the state this fall," Dave Clark, an Amazon vice president, said in the announcement statement. "We're grateful to for their business-friendly approach, which supports our continued expansion in Indiana."

The State Budget Agency estimates uncollected online at $75 million a year, while a state Senate budget leader has said it could be as much as $250 million.

Explore further: China's Xiaomi raises more than $1 bn in funding

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Mall giant sues Indiana to tax Amazon.com sales

Nov 04, 2011

(AP) -- Shopping mall giant Simon Property Group sued the Indiana Department of Revenue on Thursday to try to force it to collect taxes from Amazon.com Inc. for all sales made in the state.

Amazon says tax delay will save jobs

Sep 13, 2011

Amazon on Monday said legislation allowing online retailers to delay for one year the collection of sales tax in California would save jobs and provide time for a national law to be drawn up.

Group seeks Amazon boycott over sales tax fight

Aug 15, 2011

(AP) -- A coalition of nonprofit groups is calling on customers of Amazon.com to cancel their accounts unless the Internet retailer stops resisting a California law that requires more online retailers to charge a state sales ...

Amazon says gets OK for Calif sales tax referendum

Jul 19, 2011

(AP) -- Amazon.com Inc. says the California Attorney General's Office has approved its petition for a referendum that would let voters decide whether to overturn a new law that forces online retailers to collect sales taxes ...

Amazon to cut off California-based Web affiliates

Jun 30, 2011

(AP) -- Amazon.com Inc. said Wednesday that it will stop working with online affiliates based in California since the state passed a new rule that forces online retailers to collect sales tax there.

Recommended for you

China's Xiaomi raises more than $1 bn in funding

17 hours ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.