Independent Businesses Request Meetings With Governors in Response to Amazon’s HQ2

On behalf of more than 80 independent businesses in New York and Virginia, on Wednesday, December 5, the American Booksellers Association sent letters to Governors Andrew Cuomo (New York) and Ralph Northam (Virginia) opposing the massive subsidies the states have offered Amazon regarding its site selection of new headquarters locations. The businesses that signed on to the letters include members of ABA, the New Atlantic Independent Booksellers Association, the Southern Independent Booksellers Alliance, and Advocates for Independent Business.

“Rather than using public funds to lure Amazon to open its second headquarters here...we urge you to find ways to support in-state businesses like ours, which are the real engine of the state’s economy,” booksellers and fellow business owners wrote in the letters.

In addition, they urged the governors to focus on ways the state could support local businesses and asked for meetings with the governors to discuss the matter.

“Independently owned bookstores are so much more than the books they are selling,” said Rachel Gorman of The Golden Notebook in Woodstock, New York. “By supporting them, you support the people who work there, but also the community that gathers around these spaces. Governor Cuomo is not only destroying business, but the livelihoods that extend beyond money and into communities and families; the families we’ve built through our coworkers, our customers, and the numerous other interactions you find when working or going to your local bookstore.”

Amazon announced in November that it had decided to split its second headquarters, or “HQ2,” between Long Island City, New York, and Crystal City, Virginia. The decision concluded a highly publicized search that began in September 2017 with 238 candidate cities and states bidding against each other. The company plans to split operations evenly between the two chosen sites, with more than 25,000 employees in each city. In its announcement, Amazon revealed that it will receive $1.525 billion in direct incentives from New York and $550 million from the Commonwealth of Virginia.

The signatories to the letter decry that tax dollars will be redirected from infrastructure, first responders, and public schools to subsidize a single international mega-corporation: “Businesses like ours are the real backbone of our state’s fiscal health. Instead of subsidizing the world’s largest and most profitable corporations, our state should be asking what it can do to support Main Street.”

Bookseller David Shuman of Book People in Richmond said he signed on to the letter to Gov. Northam because Amazon “clearly doesn’t need the help. There have been plenty of other tech giants that moved locations and didn’t ask for any incentives.”

“We are grateful to the many independents who took the time to sign this letter to the governors of New York and Virginia,” said David Grogan, director, ABFE, Advocacy and Public Policy for ABA. “The old axiom is true: There is power in numbers, and these letters send a clear message to the states’ leaders that handing out billions in subsidies to an out-of-state mega-corporation is simply bad policy. We hope Governors Cuomo and Northam will heed the words of indies and look for ways to support Main Street.”

Read the letter to Governor Cuomo in full here.

Read the letter to Governor Northam in full here.

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The Honorable Andrew M. Cuomo
Governor of New York State
NYS State Capitol Building
Albany, NY 12224

December 5, 2018

Dear Governor Cuomo:

As independently owned businesses in New York State, we are writing to express our strong opposition to your decision to provide massive subsidies of public funds and tax incentives to a large mega-corporation to locate in the state. Rather than using public funds to lure Amazon to open its second headquarters here (which in all likelihood it would have done without any monetary incentives), we urge you to find ways to support in-state businesses like ours, which are the real engine of the state’s economy.

We would welcome an opportunity to meet with you at your convenience to discuss ways in which the state can support local businesses.

We were extremely disheartened to learn of the billions in subsidies New York will be giving Amazon to locate a new headquarters in Long Island City. It is unconscionable that the tax dollars we pay to the state would be redirected to subsidize our direct competitor — one of the world’s largest and most profitable companies, which among other things has a long history of failing to pay its fair share of taxes. This kind of policy is not only bad for our businesses, it’s bad for the state’s economy, and it’s bad for New York communities of all sizes.

These subsidies direct public money away from infrastructure, first responders, and public schools — which benefit all New Yorkers. It is made all the worse that these crucial dollars are going to a single international mega-corporation with a market capitalization that dwarfs virtually every other company.

In the study Amazon and Empty Storefronts, commissioned by the American Booksellers Association and conducted by Civic Economics, in 2015 Amazon sold $3.9 billion worth of retail goods in New York — that is the equivalent of 2,722 retail storefronts, or 9.4 million square feet of commercial space, which might have paid $47.8 million in property taxes. The end result was a total of more than $47.8 million in revenue lost to state and local governments. Overall, Amazon sales produced a net loss of more than 23,500 thousand retail jobs in New York.

Amazon’s third-party marketplace, much like that of eBay’s, hosts sellers from around the country. Though the sales mechanism is facilitated by Amazon, only a small portion of sellers collect and remit sales tax where it is due. This has resulted in lost sales tax revenue in communities across the country, including New York State. Far from being a boon to states, Amazon represents more of an economic black hole.

Moreover, the recent Civic Economics study Prime Numbers: Amazon and American Communities noted that in 2016, Amazon and its third-party marketplace vendors sold $9.9 billion of retail goods in the state. These transactions resulted in 3,280 displaced shops, or 28.4 million square feet, and some $315 to $404 million in uncollected sales taxes.

And while Amazon undermines the revenue sources of local and state governments, it also imposes direct costs on the public, according to Amazon’s Stranglehold, a report from the Institute for Local Self-Reliance. The report points out that one example is infrastructure. “Trucks laden with Amazon delivery boxes put wear-and-tear on roads,” the report notes, “and Amazon not only skirts the taxes that pay for upkeep on those roads, it’s also skilled at getting local governments — desperate for employment in an Amazon economy that is shrinking opportunity — to pay for new ones.” Amazon also imposes costs such as increased traffic, the study further noted. In New Jersey, after Amazon opened up a new fulfillment center, the mass of employees driving to the site led to gridlocked roads and a 300 percent increase in the accident count.

For whatever pluses you think Amazon may bring this state, those purported gains are far outweighed by costly tax incentives, job losses, and Amazon’s refusal to collect and remit sales tax for third-party marketplace sales into the state. Sadly, New York will find this out in the long run, and at the expense of small businesses.

Businesses like ours are the real backbone of our state’s fiscal health. Instead of subsidizing the world’s largest and most profitable corporations, our state should be asking what it can do to support Main Street.

We look forward to meeting with your office to discuss these issues further.

Sincerely,

Lexi Beach
The Astoria Bookshop
Astoria, NY 11106

Caitlyn Morrissey
Bank Street Bookstore
New York, NY 10025

Amanda Hummel
The Bee’s Knees
Hudson, NY 12534

Giuseppe Gentile
The Biblio-Tech Cafe
Perry, NY 14530

Li Li Huang
Bilingual Resources
Scarsdale, NY 10583

Rebekah Shoaf
Boogie Down Books
Bronx, NY 10454

Jeffrey Scott Morrow
The Book Corner, Inc.
Niagara Falls, NY 14305

Chris Doeblin
Book Culture
New York, NY 10025

Susan Taylor
Book House of Stuyvesant Plaza
Albany, NY 12203

Susan Novotny
Book House of Stuyvesant Plaza
Albany, NY 12203

Emma Straub
Books Are Magic
Brooklyn, NY 11231

Andrea Shane
Books on Call NYC, Inc.
New York, NY 10018

Marc Galvin
The Bookstore Plus
Lake Placid, NY 12946

Sarah Galvin
The Bookstore Plus
Lake Placid, NY 12946

Ezra Goldstein
Community Bookstore & Terrace Books
Brooklyn, NY 11215

Stephanie Valdez
Community Bookstore
Brooklyn, NY 11215

Robin Treadwell
Codex Books
New York, NY 10012

Carrie Deming
The Dog Eared Book
Palmyra, NY 14522

Jenna Kirchner
Element of Fun
Rochester, NY 14607

Mari Mulshenock
EvolveD Interiors & Design Showroom, LLC
Woodstock, NY 12498

Steve Heller
Fabulous Furniture
Boiceville, NY 12412

Marina Basil
The Gilded Carriage
Woodstock, NY 12498

Rebecca Fitting
Greenlight Bookstore
Brooklyn NY 11217

Jessica Stockton Bagnulo
Greenlight Bookstore
Brooklyn, NY 11217

Gaela Pearson
The Golden Notebook
Woodstock, NY 12498

Rachel Gorman
The Golden Notebook
Woodstock, NY 12498

James Conrad
The Golden Notebook
Woodstock, NY 12498

Gretchen Primack
The Golden Notebook
Woodstock, NY 12498

Jacqueline Kellachan
The Golden Notebook
Woodstock, NY 12498

Jody Bryan
H Houst & Son, Inc.
Woodstock, NY 12498

Vina Castillo
Kew & Willow Books
Kew Gardens, NY 11415

John E. Bonczyk
Lift Bridge Book Shop
Brockport, NY 14420

Sarah Bonczyk
Lift Bridge Book Shop
Brockport, NY 14420

Noëlle Santos
The Lit Bar
Bronx, NY 10459

Kathleen M. Carey
Little Book House of Stuyvesant Plaza
Albany, NY 12203

Mackenzi Farquer
Lockwood
Astoria, NY 11106

Lockwood Paper
Astoria, NY 11106

Lockwood Style
Astoria, NY 11106

Lockwood Jackson Heights
Queens, NY 11372

Stanley Hadsell
Market Block Books
Troy, NY 12180

Susan Novotny
Market Block Books
Troy, NY 12180

Kira Wizner
Merritt Bookstore
Millbrook, NY 12545

Chris Morrow
Northshire Bookstore
Saratoga Springs, NY 12866

Dick Hermans
Oblong Books & Music
Millerton, NY 12546

Suzanna Hermans
Oblong Books & Music
Millerton, NY 12546

Aaron Hicklin
One Grand Books
Narrowsburg, NY 12764

Janet Hutchison
The Open Door Bookstore
Schenectady, NY 12305

Jesse Post
Postmark Books
Rosendale, NY 12419

Bill Reilly
the river’s end bookstore
Oswego, NY 13126

Dane Neller
Shakespeare & Co.
New York, NY 10065

Heidi Bender
Split Rock Books
Cold Spring, NY 10516

Michael Bender
Split Rock Books
Cold Spring, NY 10516

Jojo Ans
Shop Little House
Woodstock, NY 12498

Kelley Drahushuk
Spotty Dog Books & Ale
Hudson, NY 12534

Matt Miller
Stories Bookshop + Storytelling Lab
Brooklyn, NY 11217

Maggie Pouncey
Stories Bookshop + Storytelling Lab
Brooklyn, NY 11217

Dik Cool
Syracuse Cultural Workers
Syracuse, NY 13217

Jonathon Welch
Talking Leaves Books
Buffalo, NY 14222

Toby Cox
Three Lives & Company
New York, NY 10014

Joanna Robertson
The Treehouse Reading and Arts Center
New York Mills, NY 13417

Jennifer Kohn
The Village Bookstore
Pleasantville, NY 10570

Peggy Zieran
Turn of the Corkscrew Books & Wine
Rockville Center, NY 11570

Martha Frankel
Woodstock Bookfest
Woodstock, NY 12498

Christine Onorati
WORD Bookstores
Brooklyn, NY 11222

Memphis Washington
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Will Glass
Word Up Community Bookshop/Librería Comunitaria
New York NY 10032

Michael Tencer
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Risely Vargas
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Cynthia Pong
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Rishauna Zumberg
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Ann Tritschler
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Renata Peralta
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Rick van Valkenburg
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Jerise Fogel
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Emmanuel Abreu
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Marisol Cruz
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Katy Boland
Word Up Community Bookshop/Librería Comunitaria
New York, NY 10032

Thomas G. Roberts
Ye Olde Warwick Book Shoppe
Warwick, NY 10990

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The Honorable Ralph Northam
Governor of the Commonwealth of Virginia
P.O. Box 1475
Richmond, VA 2318

December 5, 2018

Dear Governor Northam:

As independently owned businesses in Virginia, we are writing to express our strong opposition to your decision to provide massive subsidies of public funds and tax incentives to a large mega-corporation to locate in the state. Rather than using public funds to lure Amazon to open its second headquarters here (which in all likelihood it would have done without any monetary incentives), we urge you to find ways to support in-state businesses like ours, which are the real engine of the state’s economy.

We would welcome an opportunity to meet with you at your convenience to discuss ways in which the state can support local businesses.

We were extremely disheartened to learn of the millions in subsidies Virginia will be giving Amazon to locate a new headquarters in Crystal City. It is unconscionable that the tax dollars we pay to the state would be redirected to subsidize our direct competitor — one of the world’s largest and most profitable companies, which among other things has a long history of failing to pay its fair share of taxes. This kind of policy is not only bad for our businesses, it’s bad for the state’s economy, and it’s bad for Virginia communities of all sizes.

These subsidies will direct public money away from infrastructure, first responders, and public schools, which benefit all Virginians. It is made all the worse that these crucial dollars are going to a single international mega-corporation with a market capitalization that dwarfs virtually every other company.

In the study Amazon and Empty Storefronts, commissioned by the American Booksellers Association and conducted by Civic Economics, in 2015 Amazon sold $1.6 billion worth of retail goods in Virginia — that is the equivalent of 1,102 retail storefronts, or 3.8 million square feet of commercial space, which might have paid $7.6 million in property taxes. The end result was a total of more than $7.6 million in revenue lost to state and local governments. Overall, even counting all the jobs in Amazon distribution centers, Amazon sales produced a net loss of more than 5,897 retail jobs in Virginia.

Amazon’s third-party marketplace, much like that of eBay’s, hosts sellers from around the country. Though the sales mechanism is facilitated by Amazon, only a small portion of sellers collect and remit sales tax where it is due. This has resulted in lost sales tax revenue in communities across the country, including Virginia. Far from being a boon to states, Amazon represents more of an economic black hole.

Moreover, the recent Civic Economics study Prime Numbers: Amazon and American Communities noted that in 2016, Amazon and its third-party marketplace vendors sold $3.8 billion of retail goods in the state. These transactions resulted in 1,240 displaced shops, or 10.7 million square feet, and some $79 to $101 million in uncollected sales taxes.

And while Amazon undermines the revenue sources of local and state governments, it also imposes direct costs on the public, according to Amazon’s Stranglehold, a report from the Institute for Local Self-Reliance. The report points out that one example is infrastructure. “Trucks laden with Amazon delivery boxes put wear-and-tear on roads,” the report notes, “and Amazon not only skirts the taxes that pay for upkeep on those roads, it’s also skilled at getting local governments — desperate for employment in an Amazon economy that is shrinking opportunity — to pay for new ones.” Amazon also imposes costs such as increased traffic, the study further noted. In New Jersey, after Amazon opened up a new fulfillment center, the mass of employees driving to the site led to gridlocked roads and a 300 percent increase in the accident count.

For whatever pluses you think Amazon may bring our state, those purported gains are far outweighed by costly tax incentives, job losses, and Amazon’s refusal to collect and remit sales tax for third-party marketplace sales into the state. Sadly, Virginia will find this out in the long run, and at the expense of its small businesses across the state, the true drivers of sustainable economic growth.

Businesses like ours are the real backbone of our state’s fiscal health. Instead of subsidizing the world’s largest and most profitable corporations, our state should be asking what it can do to support Main Street.

We look forward to meeting with your office to discuss these issues further.

Sincerely,

Jennifer Morrow
Bards Alley
Vienna, VA 22180

Philip Wilson
Book Bin, LLC
Onley, VA 23418

David Shurman
Book People
Richmond, VA 23226

Sharon Ritchie
Chapters Bookshop and the Wine Cellar at Chapters
Galax, VA 24333

Angela Maria Spring
Duende District Bookstore
Washington, D.C.

Kelly Justice
Fountain Bookstore
Richmond, VA 23219

Rachel Wood
Scrawl Books
Reston, VA 20190

Sarah Pishko
Prince Books
Norfolk, VA  23510