backtop


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


  (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.



Comments     Threshold


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

RE: Tax for what?
By rudy on 7/12/2011 4:55:11 PM , Rating: 2
Taxes are complicated often a tax starts out to deter people from doing something or to pay for 1 item but quickly becomes a source of revenue for manything things. I would say your roads should be covered by your gas tax not sales taxes. Property taxes cover local things, sales tax is more for general state use like state wide schools and such. Regardless of what they are actually used for the state needs money to operate and for many years most have used the sales tax to do alot of that. Online stores take this away and even convince people to buy things that are far away rather than close for the same price just to save the sales tax. In the end this will need to be resolved some how. If you are not willing to pay sales tax you must decide which tax you are willing to pay.

So which is it?


RE: Tax for what?
By rudy on 7/12/2011 4:56:47 PM , Rating: 2
BTW one of the things I could see happening is some sort of shipping tax where packages are taxed based on mass or shipping cost or something. Perhaps it will be a special shipping sales tax that may have an instate waiver or something.


RE: Tax for what?
By Solandri on 7/12/2011 4:58:49 PM , Rating: 2
California charges sales tax on shipping and handling.


RE: Tax for what?
By Reclaimer77 on 7/12/2011 5:12:45 PM , Rating: 2
quote:
California charges sales tax on shipping and handling.


California charges a tax on EVERYTHING, and they are still broke. Go figure....


RE: Tax for what?
By Reclaimer77 on 7/12/2011 5:10:40 PM , Rating: 3
quote:
often a tax starts out to deter people from doing something


Which is wrong and was never intended. Why the HELL would you want to "deter" commerce?

quote:
Regardless of what they are actually used for the state needs money to operate and for many years most have used the sales tax to do alot of that.


There isn't a state in the country with a tax income problem. They have a SPENDING problem. The solution isn't to just tax the hell out of everyone to keep expanding spending programs going.

quote:
Online stores take this away and even convince people to buy things that are far away rather than close for the same price just to save the sales tax.


B.S! I've never had an online retailer even mention taxes, let alone use that as a sales pitch. And who cares how "close" something is? If I'm content to have it mailed to me for a lesser price, that's my prerogative. And if I buy something for the "same price", then I didn't shop around very well. Regardless, nothing is wrong or criminal in this.

Get this through your head, all of you, we do NOT have a moral obligation to pay as many taxes to our government as possible. Look at the Constitution and how many pages and Articles are designed to PROTECT citizens FROM excessive taxation.


"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki