Amazon/others may charge tax in more states soon

digitalbabe

Premium Supporter
Apr 12, 2009
42,350
USA
The battle rages on...

Per Cnet:

"A Democratic senator is preparing to introduce legislation that aims to end the golden era of tax-free Internet shopping.

The proposal--expected to be made public soon after Tax Day--would rewrite the ground rules for Internet and mail order sales by eliminating the ability of Americans to shop at Web sites like Amazon.com and Overstock.com without paying state sales taxes.

Dick Durbin of Illinois, the second most senior Senate Democrat, will introduce the bill after the Easter recess, a Democratic aide told CNET.

"Why should out-of-state companies that sell their products online have an unfair advantage over Main Street bricks-and-mortar businesses?" Durbin said in a speech in Collinsville, Ill., in February. "Out-of-state companies that aren't paying their fair share of taxes are sticking Illinois residents and businesses with the tab."

At the moment, Americans who shop over the Internet from out-of-state vendors aren't always required to pay sales taxes at the time of purchase. Californians buying books from Amazon.com or cameras from Manhattan's B&H Photo, for example, won't pay the sales taxes at checkout time that they would if shopping at a local mall--which is what Durbin means by giving online retailers an "unfair advantage."

On the other hand, there are some 7,500 different taxing jurisdictions in the United States, each with a set of very precise rules describing what can and can't be taxed and at what rate. That makes it challenging terrain for retailers to navigate.
 
Washington has bigger problems to worry about right now, like how they almost stopped paychecks for nearly 300,000 government employees a couple days ago....

I don't see this really gathering much steam for a while, otherwise the "golden-era" would have already ended. It wouldnt really change my shopping habbits anyways, amazon has stuff cheaper than most stores in my area so even with tax, they are still going to get my buisness!
 
They will still be cheaper than most retail stores in my area.

The funny thing is that my state has a "Use Tax" that basically asks you on your return if you bought things out of state and didn't pay tax on it.

If you didn't keep track of it (which I don't), you can elect to use a percentage based on your gross income to calculate your sales tax burden.

Guess they would have to rethink that whole thing for my state...lol...
:movie:
 
In California we don't pay sales tax unless the store has a physical presence, whether is storage, shipping, etc. No presence no tax. That would mean a some modification is in order. Also, doing this can affect Amazon's affiliate program everywhere. Several states elected some similar bills that cause amazon to pull the plug leaving thousands of people without that extra income.
 
The affiliate issue is definitely a potential headache for thousands of people. As far as shopping, Amazon will continue to have to compete with other retailers that already charge tax. If they can continue to streamline their logistics to stay in the green for margin, despite the taxes, there is no reason customers should not continue to shop with them. For me, this is especially true, given the level of service Amazon has provided over the years, after orders are placed. I know plenty of people that have been paying taxes at Amazon for years, and with the price-selection-service combo, Amazon still beats other retailers for them.We'll have to stay tuned...
 
I have amazon PRIME, but if I didnt and they started charging taxes, then PRIME would be an absolute MUST for the "deals"
 
And the over-taxation of this country continues.

"Hey, how can we steal more money from the US Citizens, and then throw it all down the toilet?"

Makes my head hurt. :(
 
They will still be cheaper than most retail stores in my area.

The funny thing is that my state has a "Use Tax" that basically asks you on your return if you bought things out of state and didn't pay tax on it.

If you didn't keep track of it (which I don't), you can elect to use a percentage based on your gross income to calculate your sales tax burden.

Guess they would have to rethink that whole thing for my state...lol...
:movie:

I'm from Illinois and that's the same thing they started doing this year. They kinda put you on the honor system and ask if you bought anything online.

Dick Durbin is a waste of space. If it wasn't for chicago he would have been dumped years ago.
 
Assembly passes Amazon tax law in California. Not law yet, but one step closer...

"

The state of California could collect more than $1 billion a year by taxing Amazon and other online retailers if a bill approved by the Assembly becomes law.

Assemblyman Charles Calderon, a Democrat from Whittier, says his legislation doesn't impose a new sales tax, but extends one that California should already have been enforcing.

AB155 passed, 47-16, with the support of one GOP lawmaker Tuesday. It now heads to the Senate.

Other Republicans rejected the bill because they said it would invite lawsuits, drive business out of California, and get the state entangled in the messy task of regulating the Internet.

The measure extends the sales tax to online companies that have a presence in the state, including those that work with sister companies with offices in California.

Copyright Associated Press
"
 
They are squeezing every damn penny out of everywhere they can. That's only going to affect smaller business that depend on amazon affiliates. I can't blame businesses not wanting to come here let alone leaving the state.

I hate the fact they are trying to cover the holes by taxing everything they possibly can.
 
I am going to make myself extremely unpopular here but just to throw in my 2cents worth from over the pond in Blighty. We already pay Tax (VAT) @ 20%, and that is added on however the the item is bought. In Germany, a fellow EU country, their VAT is 19% but Amazon has to add that extra 1% to the price when I buy from Amazon.de. Unfortunately some of our tax laws aren't even directed by our own government (whatever its political hue), rather the diktats handed down from Brussels.

The other day there was an offer on Amazon.co.uk and we calculated that the tax that was deducted was higher than the shipping charge they impose to the US. In other words it would be cheaper to buy something from Amazon.co.uk and ship it half way round the world rather than me buy it and have it shipped about 100 miles.

Having said that I'm surprised that they haven't caught up with them sooner.
 
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