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Cash strapped N.C. looks to milk money out of citizens in its battered local economy

When it comes to internet purchases, you're supposed to individually list them on your yearly tax return and then pay back sales taxes to the state.  Of course, few people do this.  Now the government of North Carolina and other states are battling Amazon.com and other e-tailers to get these records.

Amazon.com this week filed suit against the North Carolina state government -- specifically, the Department of Revenue (DOR) -- claiming that the state's demand for records of virtually every North Carolina resident who has purchased anything from Amazon since 2003 was not only unreasonable, but a violation of privacy.

Amazon writes in a filing for the case, "In re: Amazon.com LLC vs Kenneth R. Lay", Case No. 10-00664, U.S. District Court, Western District of Washington, "[T]he DOR has no business seeking to uncover the identity of Amazon's customers who purchased expressive content, which makes up the majority of the nearly 50 million products sold to North Carolina residents during the audit period."

If the case is lost, Amazon may have to turn over the records of millions of its customers in North Carolina.  Those individuals who purchased from Amazon (but did not report their purchase on their tax returns) might be audited and face civil penalties. At the very least, they would likely be expected to repay back taxes on the items they failed to report to the government.

In North Carolina, failing to pay state sales taxes is handled as a civil infraction.  Under the codes 105 236(5)c. and 105 236(5)a., citizens can face additional fines for dodging state taxes.  The penalty would likely be to pay 25 percent more tax, except on small items, which would require taxpayers to pay only an additional 10 percent fine.

The fight is the latest in the growing trend of states hungering for internet tax revenue.  Many states have passed or are debating laws that would tax digital downloads such as those offered by Amazon, Steam, Apple's iTunes store, or others.  While many in the public have complained about excessive taxation on the federal level, it is actually the states that have been pushing the most for bigger taxes of late.  The federal government has made some mild efforts to fight taxation of the internet.



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RE: Just A Matter Of Time
By Reclaimer77 on 4/20/2010 7:24:43 PM , Rating: -1
First off asshole, I don't live in North Carolina so I'm not justifying anything. I haven't broken this "law" as far as I know, because my state isn't ran by incompetent bloodthirsty socialists.

Secondly, your entire post was one big cop-out. It's easy to be a gutless pussy and say "well a law is a law so you lose". And you dare took offense to me calling you a government shill ? HA !

Third, this law is unconstitutional, if you bothered to read the posts here. Another poster already pointed this out. States can't make laws that break federal laws.

So shut the hell up Moto. You disgust me right now. It's bad enough having a government hell bent on coming after everyone, but to hear this ignorant placating coming from a citizen is just sad.


RE: Just A Matter Of Time
By Motoman on 4/20/2010 7:31:38 PM , Rating: 2
You are so entertaining.

If the case that was noted proved that use tax laws were unconstitutional, the federal government would have forced every state in the union to get rid of them. Guess what? Those laws are on the books - including ND where that case was from.

And exactly where do you get the idea that you have the privilege of ignoring laws you don't like - whether they seem obviously stupid or not? Exactly where did you receive such education? I'd certainly like to know.

It is eminently clear that if anyone is ignorant, it is you. In fact, it's much worse than that - when presented with obviously true information, you just declare it to be false anyway and continue on your merry way. You're not just ignorant - you're stupid. Willfully so.

Ultimately, you're just a slightly more grammatically-correct Pirks or reader1. More eloquent, but just as retarded.


RE: Just A Matter Of Time
By Reclaimer77 on 4/20/2010 7:37:45 PM , Rating: 1
quote:
If the case that was noted proved that use tax laws were unconstitutional, the federal government would have forced every state in the union to get rid of them.


Umm no, no they wouldn't. It doesn't work that way in the real world.

quote:
And exactly where do you get the idea that you have the privilege of ignoring laws you don't like - whether they seem obviously stupid or not? Exactly where did you receive such education? I'd certainly like to know.


It's called critical thinking. Something you clearly don't possess, robot.


RE: Just A Matter Of Time
By Motoman on 4/20/2010 7:40:00 PM , Rating: 2
Seriously. You think that critical thinking skills will lead you to the conclusion that you don't have to abide by laws you don't agree with?

Really?

And yes, the federal government most certainly has the capability to force states to eliminate unconstitutional laws. You know, in the real world. Which I'm guessing you've never visited.


RE: Just A Matter Of Time
By Motoman on 4/20/2010 8:02:19 PM , Rating: 2
Just in case you miss out on where I posted this link elsewhere, with a few seconds on Google I found a Supreme Court case from 1996 upholding use taxes.

http://scholar.google.com/scholar_case?case=750341...

Ohs noes. Sorry to burst your little bubble.


"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher














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