Cheng Responds to Amazon Sales Tax Dispute - NBC29 WVIR Charlottesville, VA News, Sports and Weather

Cheng Responds to Amazon Sales Tax Dispute

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Virginia's Commerce Secretary is responding to complaints from Democrats that Amazon.com does not pay state sales taxes. Earlier this month, Governor Bob McDonnell announced Amazon.com would open two new distribution centers in Virginia next year.

His commerce secretary, Jim Cheng, says the sales tax issue has nothing to do with them moving here.

"When you think about it, they could have set up a distribution center anywhere on the East Coast in the United States. They chose Virginia. They are not creating any new sales, that would not have happened anyway. It will be transparent to the buyer," he said. 

Democrats say Amazon.com should be forced to pay state sales taxes on orders processed in Virginia. It is estimated the new Richmond area distribution centers will create more than 1,300 new jobs.

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