NYT Editorial: Don't Blame Wal-Mart

[Unassisted]

It's not hard to find online stores that don't have a physical presence in your state if avoiding sales tax is your goal. I live in the largest state in the lower 48 and I buy from plenty of places that fall into that category.

[Roy Tucker]

One of the bigger online stores with no Ohio presence is Amazon. They don't charge Ohio sales tax.

Of course, I have never bought anything from Amazon so this is what I've heard from friends.

FWIW, Dell is going to build a big distribution center in West Chester.

http://www.enquirer.com/editions/200...iz_dell12.html

Tuesday, October 12, 2004
Dell center coming to West Chester
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Computer giant's distribution
site might bring up to 655 jobs

By John Byczkowski
and John Kiesewetter
Enquirer staff writers

WEST CHESTER TWP. - Computer giant Dell Inc. will open a distribution center in West Chester this year, investing up to $60 million and creating as many as 655 jobs within three years, the company said Monday.

The announcement came on the day that Butler County commissioners approved creating an enterprise zone in West Chester, the last piece of a state and local tax incentive package worth up to $10 million.

"Dell's decision to locate in Ohio is great news for the entire region and underscores Ohio's steadily improving economy," Ohio Gov. Bob Taft said.

Local officials were also elated.

"Having a company like Dell, such a well-known name, bringing a substantial amount of jobs shows the importance of this area, and how companies around the nation look at West Chester Township as a vibrant economic area," said Joe Hinson, president and CEO of the West Chester Chamber Alliance.

Average pay at the distribution center will be $12.30 an hour, or $25,584 annually, said Brian Coughlin, Butler County economic development director.

Dell, based in Round Rock, Texas, is the world's largest direct-sale computer vendor, with 2003 sales of more than $41 billion.

The center will be a joint venture of Dell and APL Logistics of Oakland, Calif., and will employ 250 people within a year.

Dell has signed a 10-year lease on a warehouse on Windisch Road in West Chester and has proposed investment and improvements there worth $30 million to $60 million. Work on the project could begin Nov. 1, and employment could reach 655 within three years, with an annual payroll of $17 million.

Package of incentives

The township in August approved incentives worth $1.8 million to $3.5 million over seven years, depending on Dell's investment. Dell has agreed to pay Princeton City Schools $560,000 over seven years to compensate for lost tax revenues.

The Ohio Tax Credit Authority in July approved a corporate earnings tax abatement worth up to $2.9 million over 10 years. Melissa Koehler, the West Chester economic development director, said that with other programs, the value of state incentives could be worth $7 million to Dell.

Help from DHL decision

Dell began talking to West Chester in January. A break came in June, when air cargo carrier DHL said it would consolidate its shipping operations in Wilmington and close operations in Erlanger at the Cincinnati/Northern Kentucky International Airport. Ohio is providing DHL incentives worth $400 million.

E-mail johnb@enquirer.com or jkiesewetter@enquirer.com

[REDREAD]

Originally Posted by 919191

One of the things I hate about Wal-Mart is the aisles. I think to determine the width of their aisles they add the width of 2 carts and then add 1/8 inch for passing room.

I thought the purpose of the aisle was to store boxes that haven't been stocked yet I haven't been to Walmart in over 5 years, but that's what always POed me..

[919191]

Originally Posted by Unassisted

I think Wal-Mart is all about making every square foot of the store profitable. That space where your cart goes isn't selling anything, so the managers try to make it as small as possible.

Yeah, but that is where my wallet happens to be!

[Johnny Footstool]

It's not hard to find online stores that don't have a physical presence in your state if avoiding sales tax is your goal. I live in the largest state in the lower 48 and I buy from plenty of places that fall into that category.

It also depends on state law. Some states don't require sales tax on any internet purchases (yet).

[Unassisted]

Originally Posted by Johnny Footstool

It also depends on state law. Some states don't require sales tax on any internet purchases (yet).

I thought there was a Federal law that pre-empted states from charging tax on out-of-state Internet purchases. It was enacted during the Clinton administration with a 5-year sunset. I never heard that it had been allowed to lapse.