Print 57 comment(s) - last by Regected.. on Jul 14 at 1:35 PM

The attorney general's office received a petition last Friday, which will require 434,000 voter signatures to qualify for the ballot

Amazon's stance on the collection of sales tax on goods sold over the internet has been clear from day one: it's not going to happen. But a new law in the state of California may change Amazon's mind real fast, or cause it to cut ties to the state.

In the recent past, we've seen the online retailer cut 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.) introduced a bill called the Main Street Fairness Act, which would force Amazon to collect sales tax. 

Last month, Governor Jerry Brown signed a bill that would require websites that forward shoppers to Amazon to collect sales tax in California. The law is expected to generate $200 million in revenue, and prompted Amazon to threaten to leave California-based affiliates. 

Now, Amazon is asking California voters to repeal the new law. The attorney general's office received a petition last Friday, which will require 434,000 voter signatures to qualify for the ballot. The attorney general's office will put together a title and summary for the petition. 

Amazon has said that it does not have to collect sales tax because of 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 those states. But between states looking for ways to offset large financial deficits and brick-and-mortar stores like Best Buy complaining about Amazon being unfair competition, Amazon is being pushed between a rock and a hard place. 

Website operators are already feeling the effect of the new law. Ken Rockwell, who operates a photography site called in California, said online retailers have stopped doing business with him because of the new law. 

"I'm trying to figure out some other payment scheme," said Rockwell. "That business model went away. I've got to look for new business models." 

Currently, Amazon only collects sales tax in Kansas, Kentucky, New York, North Dakota and Washington.

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RE: Tax for what?
By msheredy on 7/12/2011 2:13:17 PM , Rating: 2
After reading your take it actually made me think again on my view. I'd much rather pay taxes this way (completely voluntarily) vs having my income tax go up that's for sure. It's a crappy deal either way though because Cali needs the dough and I think this is one of the better ways of going about getting it.

RE: Tax for what?
By Mr772 on 7/12/2011 2:35:18 PM , Rating: 5
"because Cali needs the dough"

Correction: Cali needs to cut the state spending!

RE: Tax for what?
By The0ne on 7/12/2011 3:04:07 PM , Rating: 2
There is no correction. Both are correct. As with many states they need to cut and cut and stop spending like there's not tomorrow. Being correct, however, does not make it right. You don't want them to be comfortable in trying to get money any which way they can, no matter what.

If you live in CA, think hard about this issue, and vote! :) Review the post above about being tax for privileges vs being tax for no apparent reason except money in the governments pockets.

RE: Tax for what?
By mmc4587 on 7/13/2011 7:44:05 PM , Rating: 2
I submit for your consideration the state of Illinois.
State revenue has nearly DOUBLED in the past 10 years!
At the turn of the century IL total revenue was $70 bill.

2010 fiscal year:
$211,624,095,291.00 = Appropriated
$130,983,956,575.31 = Revinue
$ 67,159,783,227.69 = Debt


Illinois State Comptroller [written by] Daniel W. Hynes
Jul 9, 2011 ... CHICAGO – Illinois Comptroller Judy Baar Topinka on Monday announced the launch of a new office website that includes easy-to-access state ...

Unfortunately this 'new' website does not allow me to pull data from before 2009... whereas before it did, hmm !$@*%!

Perhaps someone else knows how to retrieve that data and can help me out with verifiable numbers?

RE: Tax for what?
By mmc4587 on 7/13/2011 8:05:06 PM , Rating: 2

The Federal Constitution of the United States of America contains a Free Trade agreement between all States of the Union. TAXES & TARIFFS ON INTERSTATE COMMERCE IS A FEDERAL CRIME!

Imagine how unstable our nation would become if states were constantly in a political battle against each other over to maintain interstate diplomacy and trade agreements...

RE: Tax for what?
By Regected on 7/14/2011 1:35:56 PM , Rating: 2
In the 1920's, the US stopped being a country of self governing states cooperating and became a single large entity controlled by a few. States have slowly lost the power, which was given to the states by the US Constitution, to decide for itself how to govern. There are more people tried for federal crimes now days because the federal government has been over reaching its power and passing unconstitutional laws.

"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs

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