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Print 11 comment(s) - last by Xplorer4x4.. on Jan 3 at 3:44 PM

The taxes from all three together could generate over $50 million a year

Amazon has been fighting off the implementation of sales taxes on its products in many U.S. states, but the e-tailer is coming around with the promise of building new warehouses and three new states have been added to the list.
 
According to The Wall Street Journal, three U.S. states -- including Indiana, Nevada and Tennessee -- are starting the New Year with having to pay sales tax on Amazon goods. 
 
This is great news for the three states, as officials estimate that the taxes from all three together could generate over $50 million a year. 
 
When California began collecting sales taxes on Internet commerce, it made $96.4 million from September-December 2012. 


[SOURCE: 37prime.com]

As far as Tennessee goes, Amazon wins too, since it gets to build two new warehouses in the state. As for the other two, however, Amazon just agreed to collect taxes in order to settle issues with state officials. 
 
With these three states onboard, that brings the total number of U.S. states paying sales tax on Amazon products to 19. All 19 have a combined population of about 180 million. 
 
Amazon isn't expected to tack on any new states until 2016, when South Carolina will be added to the list. 

Source: The Wall Street Journal





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How does Amazon win?
By jimbojimbo on 1/2/2014 11:51:14 AM , Rating: 3
quote:
As far as Tennessee goes, Amazon wins too, since it gets to build two new warehouses in the state.
It sounds like Tennessee wins in every way whereas Amazon actually gets nothing out of the deal. Any state would welcome new, huge warehouses with tons of jobs.




RE: How does Amazon win?
By deltaend on 1/2/2014 12:01:42 PM , Rating: 1
Probably not as many jobs as you might think:
http://www.dailytech.com/Amazon+Could+Save+Big+on+...
http://www.dailytech.com/Quick+Note+Amazon+to+Use+...

Not to mention that the working conditions might not be the best:
http://www.bbc.co.uk/news/business-25034598


RE: How does Amazon win?
By quiksilvr on 1/2/2014 12:26:43 PM , Rating: 3
Amazon has over 100,000 employees worldwide, which is more than Microsoft. Those robots are there to make the jobs easier for workers already there by removing an unnecessary trip through the warehouses, which is the cause for said mental problems during Christmas, the busiest time of the year. They still have to sort the items manually, this just automates the process so there isn't constant walking.

Furthermore, the drones are only beneficial to people living 30-60 minutes away from warehouses, not the entire country.

Source on employee count:
http://phx.corporate-ir.net/phoenix.zhtml?c=176060...


RE: How does Amazon win?
By jimbojimbo on 1/2/2014 1:53:08 PM , Rating: 2
Have you seen the 60 minutes special about Amazon? The robots fetch items to be packaged but people still package those items and seal the boxes. Humans also stock the shelves. There will still be a lot of jobs getting created regardless. Also, why link to drone shipping when it's still years and years away from now and the warehouse robot are still in the "could" stage? Also, you do realize someone has to modify any existing warehouses and actual people would get those contracts right? There's also power, property tax, and all the income taxes that the state would get. Tennessee is going to get a lot out of this deal. The only downside is the Tennessee customers who used to use Amazon will have to be more choosy about where they purchase items.
The other upside though will be that any states neighboring Tennessee will get a boost in delivery times.


RE: How does Amazon win?
By Samus on 1/2/2014 1:34:41 PM , Rating: 2
Amazon wins through undisclosed tax incentives and low labor costs (it's Tennessee after all)


RE: How does Amazon win?
By ewhite06 on 1/2/2014 1:58:30 PM , Rating: 2
Not sure how it took this long to collect state tax in Indiana - guess it was only a matter of time. Amazon has had distribution centers here for years. The one north of Indianapolis is so large that during the holidays, local police has to direct traffic to keep things moving otherwise the trucks and workers going in/out clog up the service roads and highway exits.


sucks
By p05esto on 1/2/2014 10:44:24 PM , Rating: 2
This sucks. I'll never be able to shop at amazon again becuase I live in a state they'll take sales tax from. That's the only reason to shop online and now it won't make sense. Combine sales tax with shipping and it's cheaper to go local... I guess this is one way to bring back local businesses. Is this how the internet dies?




RE: sucks
By inperfectdarkness on 1/3/2014 1:50:44 AM , Rating: 2
1. Your state sucks

2. Selection online will always trump selection at brick & mortar

3. There's plenty of other places to shop online besides amazon


RE: sucks
By Xplorer4x4 on 1/3/2014 3:44:35 PM , Rating: 2
quote:
2. Selection online will always trump selection at brick & mortar

This is a big reason I have to shop online. Chances are if I need a PC part, the part I want is not in stock in town. Last time I needed RAM, not a single store in town had the frequency I wanted, much less a single brand with heat spreaders on them.


RE: sucks
By lagomorpha on 1/3/2014 1:08:40 PM , Rating: 2
quote:
Is this how the internet dies?


Not with a Bing! but with p05esto whimpering?


Wisconsin
By *kjm on 1/2/2014 5:47:12 PM , Rating: 2
“And I don't know why [Apple is] acting like it’s superior. I don't even get it. What are they trying to say?” -- Bill Gates on the Mac ads













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