SC Senate Approves Amazon Deal

Staying in session until after 12 a.m. Friday, the South Carolina Senate reached a compromise and approved the deal to bring an Amazon.com distribution center to the state, creating at least 2,000 jobs.

The deal would exempt Amazon.com from collecting the state sales tax for five years in exchange for the company's opening a large distribution facility in Lexington County that creates at least 2,000 new jobs with health benefits. The deal also requires Amazon to invest at least $125 million in the state.

The compromise would require Amazon to send emails to South Carolina customers after they make purchases telling them that they're responsible for paying a use tax, equal to the sales tax, to the state Department of Revenue. There will be a link to the DOR's website so the purchaser will have information on how to pay the tax.

The compromise would also have Amazon send annual statements to all South Carolina customers by February 1 of each year with summaries of their purchases for the year and a reminder that they must pay the use tax if they haven't already.

The debate had dragged on for two days as opponents of the deal introduced hundreds of amendments. Their main concern was that the deal would give Amazon an unfair advantage because its prices would be perceived to be lower, since it wouldn't be collecting the sales tax.

Sen. Larry Grooms, R-Berkeley, argued Thursday, “To give them an advantage that no other retailer in South Carolina has is absolutely wrong.” He was arguing in favor of an amendment that would exempt all online sales from the state sales tax for five years, the same deal Amazon would get.

Senators knew they were running out of time. The legislature adjourns for the year June 2nd, but will return on the 14th to deal with gubernatorial vetoes and redistricting.

Since the Senate changed the bill, it will have to go back to the House for its approval. Senators say they expect the House to go along. If so, the bill would go to Gov. Nikki Haley, who has said she's against the deal but would not veto it, so it would become law without her signature.

After the vote early Friday morning, Dave Clark, Amazon VP of North American Operations, released a statement saying, “We appreciate the South Carolina legislature’s decision, and once the bill becomes law, we’ll immediately resume work to complete our $125 million commitment to the state and restart our hiring efforts, which will bring 2,000 full-time jobs with benefits to South Carolina.”