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Amazon to spend $1.1 billion in Central Ohio

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Plan includes data center and fulfillment centers, with 1000 potential jobs

It only took $81 million in tax credits to entice Amazon to build its next data centers in Central Ohio; a fifteen year 100 percent sales tax exemption and a 15 year 75 percent state income tax credit make up the bulk of the tax advantages that closed the deal for Amazon.

Amazon has said that its eventual plans will bring 1000 jobs to the area. The data center itself is planned to have 120 full time employees, and the model for an Amazon Fulfillment center usually brings about 200. When making the pitch for the tax incentives Amazon indicated that the average salary for the data center would be $80,000 (according to information supplied by the state of Ohio); this is significantly more than the salary paid for the average job at an Amazon fulfillment center. Amazon has also not indicated where the roughly 700 additional jobs will be coming from.

A three year program

The $1.1 billion investment is expected to be made over three years, as the data center and fulfilment facility are constructed. Local population density and proximity to a major central region of the US were given as additional reasons for the construction of the facilities in this location. As is usually the case, state officials have praised the incentive package and talked about how much additional business that the Amazon facilities will bring to the area, an oft stated premise that history has yet to show as accurate.

And in the finest tradition of the law of unintended consequences, the new Amazon presence in the state of Ohio means that Ohio shoppers buying from Amazon online will now be paying state sales tax on all of their purchases, beginning immediately. Ohio has a scaled sales tax, based on location, with a minimum of 5.75 percent and a maximum of 8.75 percent.

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