Governor Sandoval Announces Agreement with Amazon

Governor, Online Retailer Encourage Congress to Create Simplified Sales Tax Framework


Contact

Mary-Sarah Kinner
Communications Director
CARSON CITY, NV - April 23, 2012

Nevada Governor Brian Sandoval announced today that the state has reached an agreement with Amazon to begin collecting Nevada sales tax on purchases and to work together for immediate enactment of federal legislation that will address the needs of states, retailers and consumers by creating a simplified and equitable framework for sales tax collection.

Governor Sandoval said he will continue to push Congress to act on legislation that will allow states to collect revenues that are already due.

“The only way to completely resolve this issue is for Congress to enact legislation that, within a simplified nationwide framework, grants states the right to require collection by all sellers,” said Sandoval. “We thank Amazon for creating jobs and investment in Nevada and are very grateful the company is working with us on a federal solution.”

Amazon subsidiaries employ thousands of Nevadans in the Reno and Las Vegas areas.

“Amazon appreciates Governor Sandoval’s focus on Nevada jobs and his efforts to encourage Congress to resolve the sales tax issue this year,” said Amazon Vice President of Global Public Policy Paul Misener. “We strongly support federal legislation permitting interstate sales tax collection because it is the only way to level the playing field for all sellers, the only way for Nevada to obtain all the sales tax revenue that is already owed, and the only way to fully protect states’ rights.”

According to the agreement between the Nevada Department of Taxation and Amazon, the company will voluntarily begin to collect and remit Nevada sales tax beginning January 1, 2014, or as of the effective date of federal legislation, whichever is earlier. Amazon will collect the sales and use tax in the same manner as traditional brick and mortar retailers, relieving Nevadans from having to self-report use taxes from these sales to the state.

ABOUT AMAZON.COM:

Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial.

Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. The new latest generation Kindle is the lightest, most compact Kindle ever and features the same 6-inch, most advanced electronic ink display that reads like real paper even in bright sunlight. Kindle Touch is a new addition to the Kindle family with an easy-to-use touch screen that makes it easier than ever to turn pages, search, shop, and take notes – still with all the benefits of the most advanced electronic ink display. Kindle Touch 3G is the top of the line e-reader and offers the same new design and features of Kindle Touch, with the unparalleled added convenience of free 3G. Kindle Fire is the Kindle for movies, TV shows, music, books, magazines, apps, games and web browsing with all the content, free storage in the Amazon Cloud, Whispersync, Amazon Silk (Amazon’s new revolutionary cloud-accelerated web browser), vibrant color touch screen, and powerful dual-core processor.

Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn, www.amazon.it, and www.amazon.es. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

FORWARD-LOOKING STATEMENTS:

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, fulfillment center optimization, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, inventory, government regulation and taxation, payments and fraud. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

###


Office of the Governor - 101 North Carson Street - Carson City, NV 89701 | (775) 684-5670
 
Grant Sawyer State Office Building . 555 East Washington, Suite 5100 . Las Vegas, NV 89101 | (702) 486-2500