A sales tax dispute between an internet retail giant and the State of Texas has been resolved.

Amazon.com and Texas Comptroller of Public Accounts Susan Combs announced an agreement, which they say will create thousands of new jobs in the Lone Star State by the online retailer.

According to a press release from the Texas Comptroller’s Office, Amazon.com plans to create at least 2,500 jobs and make at least $200 million in capital investments in the state.

The e-business will begin to collect and remit Texas sales tax on July 1st of this year, and the agreement settles all sales tax issues between Texas and Amazon.

“We strongly support the creation of a simplified and equitable federal framework, because Congressional action will protect states’ rights, level the playing field for all sellers, and give states like Texas he ability to obtain the sales tax revenue that is already due,” said Paul Misener, Amazon Vice President of Global Public Policy.

“We thank Amazon for partnering with us to find a solution that works for our state,” said Combs. “This is an important step in leveling the playing field in Texas; however Congress should enact federal legislation that will give states access to revenues that are already due, which would resolve this issue fairly for all retailers and all states.”