http://news.yahoo.com/s/ap/20110210/ap_on_bi_ge/us_amazon_sales_tax_dispute Online retail giant Amazon.com is closing a suburban Dallas distribution center and scrapping plans to expand Texas operations after a dispute with the state over millions of dollars in sales taxes. If you are not familiar with the way sales taxes are collected with online purchases here is a short explanation. If a retailer has a physical presence in the state that the internet purchase is made, then they have to collect the sales tax from the buyer and turn it over to the state. If the buyer is in a state where the retailer doesn't have a physical presence then no sales tax is collected or paid. What the article doesn't make clear is when this $269m that Texas wants is owed from. If Amazon hasn't paid taxes since they opened the distribution center there in 2005, then yes they owe and moving because the state wants the money is just away to hold the state hostage to get them to forgive the debt. Now if Amazon has been collecting and paying State sales taxes since they opened the distribution center in 2005 and the Texas is going after them for money before that, then I don't blame them for leaving. Because if that is what the state is doing it amounts to extortion.