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  (Source: csmonitor.com)
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 www.kenrockwell.com 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 Reclaimer77 on 7/12/2011 2:31:08 PM , Rating: 2
quote:
But online, I'm using my PC over a service I pay for (and pay taxes for), over cables owned by private companies, and to top it off I'm creating jobs for those sites and the USPS... what exactly am I being taxed for in this situation? Wear and tear on the air, cables are strung through?


Exactly. The "use tax" is a fictional construct to get around Constitutional constraints prohibiting states taxing out of state sales. Something that only the Federal Government has the power to regulate according to our Constitution.

I like your post because you are asking questions, good and solid ones. You are trying to make sense out of that which makes no sense. When you apply simple logic and common sense to the problem, your post cuts to the very core of the issue.

Internet taxation is not only ethically wrong, but legally as well.

p.s. waits for Motoman to start up the same old argument again.


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