Amazon.com plans 2 N.J. warehouses

TRENTON - Amazon.com, the world's biggest online retailer, is in talks to open two warehouses in New Jersey in a deal that could bring 1,500 full-time jobs to a state where unemployment has hovered around 9 percent.

State Assembly Democratic Leader Louis D. Greenwald, who has been involved in the talks, said Amazon was seeking a 22-month sales-tax holiday - opposed by some retailers and at least one lawmaker.

The Seattle-based online retailer is not required, as brick-and-mortar retailers are, to collect the 7 percent state sales tax for purchases. That has led to what Greenwald and others believe is an unfair advantage for Internet-based sellers, because they can sell their products more cheaply than local merchants.

If Amazon acquires a physical presence in New Jersey by opening warehouses, it would have to collect taxes.

New Jersey residents who buy from Amazon.com are supposed to pay the sales tax when they file their state income taxes, though few do.

"My goal and the goal of legislative leadership is to find a way to balance the interests of the retail merchants and the Internet merchants in a way that will ensure equity and a level playing field going forward," said Greenwald, of Camden County.

The retailer has agreed to build job-creating distribution centers in Indiana, California, Tennessee, and South Carolina in exchange for sales-tax exemptions through 2014 or later.

New Jersey stands to collect $200 million or more a year in sales taxes if Amazon locates in the state, after its exemption ends. The jobs the deal would create would pay an estimated $40,000 to $50,000 with health benefits.

Amazon spokesman Braden Cox declined to comment. The Christie administration did not return messages for comment.

Sen. Raymond Lesniak (D., Union) opposes giving the retailer a sales-tax holiday.

"It's a bad deal for New Jersey no matter what," he said. "We're giving up hundreds of millions of dollars in revenues we should be getting, and we're also putting at risk jobs in our retail centers and central business districts throughout the state."

Lesniak is sponsoring a bill requiring companies like Amazon to collect sales taxes in the state. He said the retailer was free to take advantage of other tax-incentive programs New Jersey has in place to attract businesses.

Greenwald said Amazon appeared willing to forgo those sweeteners in exchange for a limited-time sales-tax exemption.

Some retail merchants also oppose a sales-tax exemption for any length of time.

"Retailers across the state from Main Street to the malls want a level playing field immediately," said John Holub, president of the New Jersey Retail Merchants Association. "The retail industry supports over one million jobs. While they can compete on price, they can't break the law and not collect the sales tax. We can't afford to wait two more months, let alone two more years, for out-of-state Internet retailers to start collecting sales taxes."

No votes have been scheduled.