Print 59 comment(s) - last by Alexvrb.. on Jul 2 at 10:14 PM

  (Source: Stuart Isett/The New York Times )
Amazon says these sales taxes are "unconstitutional and counterproductive"

Amazon has fully committed itself to its effort against the collection of sales taxes, and it continues to prove this dedication over and over as it cuts ties with state after state.

After cutting ties with states like Texas, where Texas State Comptroller Susan Combs charged Amazon $269 million in unpaid sales taxes, and Illinois, where Sen. Dick Durbin (D-Ill.) plans to introduce a bill that would force Amazon to collect sales tax called the Main Street Fairness Act, Amazon is now looking to turn its back on California as well after Governor Jerry Brown signed a bill that would enforce the collection of online sales tax. 

"We oppose this bill because it is unconstitutional and counterproductive," said Amazon in an e-mail to Californian affiliates. "It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective."

Amazon also noted that these sales taxes "spur job and income losses." But Amazon has to do what it feels it should do, and with this bill in place, Amazon won't think twice about cutting ties with its 10,000 California-based sales affiliates.

Amazon is the largest online retailer with more than 90 million registered buyers and $34 billion in annual sales. In recent times, it has encountered increased pressure from certain U.S. states to collect online sales taxes since the retailer's affiliates operate within those states. In addition, some U.S. states see an online sales tax on Amazon purchases as a way of digging themselves out of large state budget deficits. 

But Amazon refuses to back down. Last month, Amazon CEO Jeff Bezos said the U.S. states' demands were unconstitutional, citing a 1992 Supreme Court decision that excuses Amazon and other remote sellers from having to collect taxes in U.S. states that do not have the company's employees or warehouses operating within its borders. 

As of right now, Amazon collects taxes in Kansas, Kentucky, New York, North Dakota and Washington. In other U.S. states where Amazon does not collect sales taxes, customers are to document and pay tax on out-of-state untaxed sales, but rarely do because they either don't know about this or just don't care.

Brick-and-mortar stores like Best Buy and Wal-Mart retaliated saying that Amazon has an unfair advantage due to its lack of sales tax collection in other states.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

Silly California
By MrBungle123 on 6/30/2011 11:00:07 AM , Rating: 2
We still have a federal system and companies and people can vote with their feet and leave. This will end up costing them more than they will get out of it.

RE: Silly California
By tng on 6/30/2011 11:04:09 AM , Rating: 2
I live there and California lawmakers just can't seem to help themselves.

They have one of the worst unemployment rates in the US and they still are looking to impose more regulations, taxes and other laws that will send more businesses packing for Nevada, Utah, the Dakota's, Idaho or other state that really does look at them as good to have there and not just a cash cow.

RE: Silly California
By MrBungle123 on 6/30/2011 11:51:47 AM , Rating: 2
I'm kind of wondering if the people in California will figure it out or if they will tax themselves into oblivion. My fear is that the huge population in California will move to other states and vote in more of the same anti-business stupidity that forced them to leave in the first place.

RE: Silly California
By tng on 6/30/2011 12:35:45 PM , Rating: 2
My fear is that the huge population in California will move to other states and vote in more of the same anti-business stupidity
That is happening in Oregon and Washington now. The people that move to rural areas of the state and talk about how much better it is than CA and then try to make it just like California.

RE: Silly California
By MrBungle123 on 6/30/2011 1:22:35 PM , Rating: 2
Here in Oregon the state does whatever Portland wants to do because that is where all the population is, the rural areas get overridden in pretty much every election. Time for the state of Jefferson I say.

RE: Silly California
By tng on 6/30/2011 8:40:56 PM , Rating: 2
Yeah, know what you mean. I grew up in Klamath Falls and that has always been the case. Now I live in NorCal and it is the same way there, the Bay area and LA overrule the rest of the state.

Lets here it for the State of Jefferson....

RE: Silly California
By MrBungle123 on 7/1/2011 10:55:16 AM , Rating: 2
No way! I live in K Falls now. lol. where are you at now?

RE: Silly California
By tng on 7/2/2011 4:46:18 PM , Rating: 2
South of Sacramento, commute into the Bay Area when I am not on the road.

RE: Silly California
By KCjoker on 6/30/2011 7:29:06 PM , Rating: 2
I'll tell you what's going to happen. Soon states like Ca and Illinois will get a bailout by the federal government. Which means states that have been managing their money well will be punished because they'll be the ones paying it.

RE: Silly California
By Dorkyman on 6/30/2011 9:41:23 PM , Rating: 2
Messiah already did that a few years ago. But no more, now that the House is solid R.

Grew up in California. Sorry to see it all turn to crap, but they did it to themselves.

"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki