Amazon to Exit Texas in Tax Dispute

Amazon is closing a Dallas-area fulfillment center and canceling a planned expansion of its operations in Texas after the online retailer failed to reach an agreement with the state over taxes.

In an email to staff, Dave Clark, the company's operations chief for North America, said the state's "unfavorable regulatory climate" prompted the decision. "Despite much hard work and the support of other Texas officials, we've been unable to come to a resolution with the Texas Comptroller's office," Clark wrote in the email. "Closing this fulfillment center is clearly not our preferred outcome." A spokesman for Susan Combs, the Texas Comptroller of Public Accounts, said the state considered the distribution center to constitute a physical presence in Texas, making Amazon.com responsible for collecting sales taxes.