Turns out that Amazon will begin collecting sales tax on California orders Sept. 15 (First world problem, I know). I am just kinda' bummed cause I order a lot of stuff from them.
The death of Amazon (well, not really....I am just whining a bit)
- Thread starter Matt555
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It's not just CA, Amazon sent letters to its customers in TN too. I honestly think it will be an issue for Amazon. Our sales tax is 10% and if I can get an item from another site 10% cheaper because of tax, I will. I buy from them too, but there are other vendors out there.
The tradeoff is that Amazon can now open facilities in CA itself, shaving at least a day if not more off delivery times. In major cities, SAME DAY delivery will be an option.
Since shipping is free most of the time, they're still going to be cheaper for the most part.
For those of you who haven't followed this saga, Amazon has been out in front of the effort to forestall the collection by online retailers of state tax. They have to charge state tax wherever they have facilities and they must have opened up facilities in CA. This is not something they ever wanted to do.
Given the hunger at the state and federal level for new revenue services, it appears inevitable that all online retailers will eventually be forced to charge sales tax on every transaction. Just don't see how it's avoidable.
Given the hunger at the state and federal level for new revenue services, it appears inevitable that all online retailers will eventually be forced to charge sales tax on every transaction. Just don't see how it's avoidable.
oh Lord.
Amazon owns Zappos.com too. (Not sure how many others ? )
Actually, it will probably be a matter of time before our legislature will mandate an internet sales tax anyway....sigh...I bet brick and mortar WallyMart will be glad to hear this..... if they do.
Sales tax has always been applicable on Amazon purchases, but consumers were on the honor system to report it on their state income taxes.
This just closes the loophole that Amazon was more than willing to exploit for competitive advantage for years.
This just closes the loophole that Amazon was more than willing to exploit for competitive advantage for years.
Yep,
I save all my receipts and print them off at the end of the year and take it to the tax lady. The Michigan sales tax (6%) is then taken into account.
- Thread starter
- #9
Yes, they can oppen a facility here if they want, but they have no plan to at this time.....yet we are still going to pay tax on orders.
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Same day delivery is what they are after. I think it's worth it.
garyg
B&B membership has its percs
Ok, let's whine up & cry about paying the retail taxes to the state in which we or you are citizens, get benefits of, vote for the folks that pass the taxes, etc. Oh, wait, there aren't local stores save China Mart, humm .. the hunger of the states to get back a little of what has been lost? Yup. Cry for Me Amazonia .. after you help drive local businesses out of that ..
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- #12
With that tone, you better never have shopped at a Wal-Mart, Best Buy, Target, or ANY chain store for that matter...otherwise, you would just be a hypocrite....you know, for killing small business.
And I have NO problem paying taxes and supporting my state. I will actually be voting to raise our sales tax this November. What I have a problem with is the inconsistency of internet sales taxation. It should be all or nothing. If there is no in state presence of Amazon, I should not have to pay taxes on items I order from them. There are still many other sites I can order from and don't have to pay taxes. They are just targeting Amazon because they are the biggest.
I wish they would open up am Amazon warehouse here in Oregon. I would gladly pay the 0% sales tax for same or one day delivery.
You have to pay a use tax on all Internet purchases. By charging a sales tax, California is just closing the loophole that many have been illegally exploiting. Nothing is changing, except that an illegal activity is now impossible to commit.
Amazon has been charging sales tax on shpments to New York for quite a while. Amazon does not have a physical presence in NY; NY took the position that since some of their "partners" had a presence in the state, then Amazon had to charge/collect sales tax. Amazon chose not to fight the issue. NY is perhaps the greediest state in the county with regards to sales tax and probably wastes a greater portion of that revenue than any other state.
I think this may have been more widespread than we believe. I live in Kansas and if memory serves I have been paying sales tax on any Amazon purchases for some time. Don't quote me on that though because it has been awhile and my memory is short at times.
Cheers, Todd
Cheers, Todd
- Thread starter
- #18
Amazon does have warehouses in New York. Lots of my orders come from there.............
If they see they're losing money, they'll change it somehow. Either reduce the cost of the item or something. Chances are, you'll still get the item cheaper than if you were to visit a b/m store.
garyg
B&B membership has its percs
Apologies if my earlier post offended anyone, but if their business model is tax evasion as alluded to in the OP, my friend RICO should have been applied a while ago. I avoid the chain stores like the plague they are, but did buy a paper outside Walgreens just today, if that helps. And soap from Bullgoose ..
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