Amazon to Build New Fulfillment Centers in Tennessee, Virginia

Amazon plans to build two fulfillment centers in both VIrginia and Tennessee, creating more than 2,650 jobs in the process, the Seattle-based online retailer announced Thursday.

The fulfillment centers will receive, package and help distribute shipments to their final destinations. Amazon will invest $135 million in each state, and the deals will add more than 1,350 jobs in Virginia and more than 1,300 jobs in Tennessee.

The fulfillment centers are expected to be fully operational by next fall, the company said.

Amid a difficult economy, the governors of both states touted Amazon's investment as a major benefit to constituents as it would create new jobs.

With the addition of Tennessee, Amazon now directly employs people in 19 different states. However, the company has also cut positions from states such as Illinois and California because of new laws requiring large online retailers to pay sales taxes.

Supporters of the tax argue that Amazon has exploited a loophole in the tax code that allows the company to evade sales taxes.They argue that as more people shop online, states have lost out on critical revenue due to the lack of sales tax.

Amazon has said it would support the sales tax if all online retailers, not just large retailers, were subject to the requirement.

Shares of Amazon rose 2.41 percent to $178.58 in mid-morning trading.