Amazon.com, Inc (NASDAQ:AMZN) gets big tax reprieve from the state of Nevada

It seems like luck is hovering around Amazon.com, Inc (NASDAQ:AMZN). They have been granted tax breaks by the government of Nevada for their 100,000 square foot warehouse which is to be constructed in Reno. It is after Amazon.com, Inc (NASDAQ:AMZN) assured The Governor’s Office of Economic Development that Amazon.com, Inc (NASDAQ:AMZN) will be contributing to the state economy by investing 28 million dollars in capital equipment and display building improvement at the new site.

Initially Amazon.com, Inc (NASDAQ:AMZN)’s warehouse was located in Fernley, which is about 30 miles away from Reno. The old warehouse will be shut down completely and this state of the art facility would be constructed in Reno. This is the same facility which would have the Tesla gigafactory built.

The Governor’s office agreed to reduce taxes due to the investment Amazon would make but 2 percent sales tax would be there for sure. Amazon.com, Inc (NASDAQ:AMZN) will also be having a reduction on the modified business tax for four years and personal property tax for the next 10 years and the taxes benefit sums up to 1.3 million dollars in total.

Amazon.com, Inc (NASDAQ:AMZN)’s executive director for development said that the new construction would be a completely different operation from the Fernley warehouse. Reno will house big purchases like big flat screen TVs. Fernley warehouse dealt with much smaller items comparatively.

The new operation will have the same employees as Amazon.com, Inc (NASDAQ:AMZN) isn’t looking to hire new ones. The employees will be given similar positions and with a little training be ready for their new responsibilities. Amazons Executive Director for development stressed on that fact that it was important for them that the old employees would be kept on at the new facility.

This is not the only case for tax abatement recently, especially for the Government of Nevada, as they have been approving tax abatements for companies who’ve showed interest in investing in the state on a larger scale.

One of such cases is of the pharmaceutical company Catamaran LLC. It serves about 35 million people and also manages the pharmacy services of Nevada’s employees. Catamaran promised to invest 46.5 million in equipment and capital investment in Southern Nevada. Not only that, the company representative Mike Shapiro confirmed the rumors that they would be investing around 17 million dollars in building improvements.

Catamaran will send 200 employees to their new operation in Nevada as soon as it starts, and around 350 more as time progresses. They’ll be given wages of around 23.10 per hour.

European Union anti-trust regulators are after Amazon.com, Inc (NASDAQ:AMZN) for its tax arrangements in other states but we aren’t quite sure if they’ll miss out on this one. Amazon.com, Inc (NASDAQ:AMZN) is going through a great run on the stock market as well, its investors are happy and their sales are among the best on the internet. Getting shaken down by tax regulators would be quite embarrassing for a reputed company like Amazon.com, Inc (NASDAQ:AMZN).