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.
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
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