RALEIGH – The Triangle’s chances of landing Amazon’s massive HQ2 project and its 50,000 jobs received a boost from the Supreme Court today.

According to North Carolina State University economist Dr. Michael Walden, the High Court’s ruling that Amazon and other online retailers must collect sales taxes on all purchases means more price pressure on the ecommerce giant. Given that North Carolina already ranks among the lowest among the 20 Amazon HQ2 finalists in terms of local and state tax burden, Walden says the ruling gives more strength to what the state has to offer in terms of economic benefits.

“In my judgement, the Supreme Court ruling helps North Carolina’s bid for Amazon, due to our relatively low taxes – especially the corporate income tax.,” Walden tells WRAL TechWire.

A UNC law professor who writes about economic issues isn’t so sure there will be an impact.



Amazon recently fought and eventually defeated a tax increase in its home town of Seattle, which sought to impose fees on each Amazon worker as well as other large employees to help pay for affordable housing and to deal with homeless issues. Walden says the battle reflects Amazon’s bottom line profit concerns.

“The recent experience in Seattle – where a ‘head tax’ was first proposed – and the pulled back in response to push-back from Amazon and others – indeed shows the company is sensitive to local and state taxes,” Walden says.

The decision also could affect Amazon in other ways.

“The ruling may mean Amazon may have to raise its fees, charges to suppliers and customers,” Walden adds.

He’s not sure, however, there will be a big impact.

“My guess is customers will still pay – for the convenience,” he notes.

UNC professor’s perspective

Kathleen DeLaney Thomas, Assistant Professor of Law at UNC School of Law Tax Institute who has written about taxes and economic issues, says she doesn’t see a “big impact” on Amazon’s HQ2 decision making process.

“As you probably know, the decision won’t directly impact Amazon’s location choice because we are talking about tax charged on purchases, which is not influenced by where Amazon is headquartered,” she tells WRAL TechWire.

“But, I take your larger point to be that perhaps Amazon will now be more sensitive than ever to tax issues, particularly when choosing a new HQ. That’s certainly possible. ”

Thomas, who earlier this year wrote about taxes and the so-called “gig” economy of Uber and other firms employing contractors, doesn’t see Amazon suffering overall as a company.

“I’m not sure how much today’s decision is actually going to effect Amazon’s bottom line. I know the market is reacting today but I don’t think that necessarily signifies a long-term hit,” she explains.

“As you might already know, Amazon is already collecting sales tax on its direct sales. It wasn’t previously collecting the tax on 3rd party sales, and now presumably it will in those states with a law that requires it. But will that really harm Amazon’s revenue?

“The tax is paid by the consumer, not Amazon, but obviously the concern is a decline in sales. My own view (admittedly a guess) is that people buy from Amazon for the convenience first and foremost, and also for the prices, and are not going to significantly alter their buying patterns in anyway because of sales tax collections.

“In other words, I see consumers paying more tax, states getting more tax revenue (NC can also benefit here), and Amazon probably doing about the same. Perhaps Amazon even does better because competitors that weren’t previously collecting tax now must do so.”

Apple impact?

The Triangle also remains in contention for a new campus to be built by tech giant Apple and several thousand jobs. Could the court decision affect the Apple choice?

” These issues are less important for Apple,” Walden says.

“Still, even in Apple’s mind, I expect the ruling helps NC’s competitive position.”

States will be able to force shoppers to pay sales tax when they make online purchases under the Supreme Court decision that will leave shoppers with lighter wallets but is a big win for states, the Associated Press reported.

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