Wednesday, June 6, 2012

Amazon to build distribution centers in New Jersey

(Reuters) - Internet retailer Amazon.com Inc will build two distribution centers in New Jersey, provided it gets sufficient economic incentives from the state, Governor Chris Christie said on Wednesday.

The Republican governor said in a statement the distribution centers would require at least $130 million of capital investment and create "several thousand quality jobs for our families, including plans for over 1,500 full-time jobs, as well as thousands of full-time temporary, seasonal and construction jobs."

"The investment commitment is contingent on the receipt of economic development incentives that make such investment economically viable for both the State of New Jersey and the company," Christie said in the statement.

Amazon officials were not immediately available for comment.

Amazon has yet to decide where the new centers would be located, according to the governor's spokesman, Kevin Roberts.

If the distribution centers are built, Amazon has agreed to collect state sales taxes on purchases from New Jersey residents by July 1, 2013 - or earlier if a federal law is enacted requiring it to do so, according to the statement.

E-commerce companies, including Amazon, often do not collect state sales taxes unless they have a physical presence in a state. More states are hoping that tax revenue from Internet sales will help them fill budget holes.

A spokeswoman for the New Jersey Economic Development Authority was not immediately available to say what kinds of incentives, such as tax credits, Amazon might be offered.

(Reporting By Joan Gralla; Editing by Leslie Adler)


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