Amazon Takes On California (Internet sales tax)

[alp227]

Source: The New York Times

SAN FRANCISCO — Amazon, the world’s largest online merchant, has an ambitious and far-reaching new agenda: it wants to rewrite tax policy for the Internet era.

Amazon said this week that it would push a voter initiative in California that could eliminate sales tax for virtual sellers with only a modest physical presence in the state. Its move instantly escalated the company’s long-running battle with many states over collecting sales tax, taking the question directly to voters. And it has sharply intensified its dispute with physical retailers like Wal-Mart Stores and Target, which have vowed to fight the measure.

Some political science and business professors say the conflict could take on the polarizing nature of Proposition 13, a decades-old referendum that limited property tax increases and remains a lightning rod in the state. Political experts say Amazon’s proposed referendum is likely to gather the signatures necessary to appear on the ballot as early as next February.

Nancy F. Koehn, a retail historian at the Harvard Business School, said the initiative highlighted the evolution of Internet retailing into a “major highway of commerce.”

Read more: http://www.nytimes.com/2011/07/14/technology/amazon-takes-sales-tax-war-to-california.html?partner=rss&emc=rss&pagewanted=all

[msongs]

1. corporate whores are free to not do business in california. Or are they copying the mormon church? n

[cstanleytech]

2. They used blackmail in SC to get an exception on taxes already. nt

[joeglow3]

16. They are following Public Law 86-272

Until the Federal government changes this law, that will reign supreme and Amazon will win out.

[DreamSmoker]

3. Legislators fu---- This State again

Instead of leaving things alone..
Someone in the California Legislate thought this would be a great way to get some huge Cash..
More TAXES????
So now not only did California Loose By Amazon leaving and affiliates completely shut down...
Now No Affiliates Get Payed.. That means no tax money.. And no Paychecks for these folks to spend money and stimulate California's economy...

[PSPS]

4. I disagree. Amazon and their "affiliates" just want to freeload.

Amazon and their "affiliates" do sales in a state with a sales tax. The sales tax funds state services and infrastructure, like the police, the fire departments, the roads used to deliver their packages, the roads their "affiliates" use to do business, the water they drink, etc.

The tax is a pass-thru anyway and doesn't cost Amazon anything.

This is just a case of another giant corporation whining about having to pay their tab. The notion that people get fire/police/roads/water and everything without having to pay taxes is pure teabag-nuttery.

[ProgressiveProfessor]

6. All I want is for the state to follow Federal law, and this does not

Out of state vendors of all sizes do not have to collect and forward sales taxes in states they do not have a nexus in. It is up to those state residents to pay use taxes (sales tax equiv). CA is trying to get Amazon to do it job for it without the authority to do so.

This will be a slam dunk once it reaches the ballot.

[Psephos]

11. Add my voice to yours. n/t

[jberryhill]

18. "they do not have a nexus in"

Are you saying that CA-located Amazon affiliates are not contracted agents of Amazon?

[rayofreason]

27. I agree as well. n/t

[slackmaster]

7. The affiliates who live in the state pay income tax, which is the largest source of state revenue

They also pay fuel taxes, sales taxes on purchases they make in the state, and property tax on their homes.

[jberryhill]

19. But they are transacting sales for Amazon

Everyone who owns a 7-11 franchise in CA does all of those things too, AND 7-11 collects sales tax on the transactions.

What's the difference?

[slackmaster]

31. When they do, they are required under present law to charge California sales tax

It's their responsibility.

When an out-of-state merchant sells something to a person in California, it's the buyer's responsibility to pay the (use) tax.

[DreamSmoker]

13. Well no money will be made in Cali

Bottom line is NO Money here for California at all now....
Amazon is gone and all connected....
Now whats next????????

[slackmaster]

17. What's next is our bonehead legislature scratching their heads, wondering why their plan backfired

And trying to figure out how to make up for the lost revenue.

[oldhippie]

29. Just who exactly is the bad guy here? ......

The California tax is a Sales and Use Tax. The law says that CA residents are to declare their internet purchases and pay their fair share of the tax in their annual returns. It turns out that most CA residents blow off this law. So instead of the state of CA enforcing it's own law upon it's citizens, it tries to get someone else, not of their jurisdiction, to go through the hassle of figuring out dozens of different tax jurisdictions, collect the tax money for them, and send it in with a myriad of forms and justifications. Why doesn't CA just enforce it's own law on it's citizens?

Who is the bad guy here? The citizen scoflaws who refuse to obey CA tax law? Or the out of state corporation that has no desire to enforce CA law upon it's residents?

[Name removed]

30. Deleted message

Message removed by moderator. Click here to review the message board rules.

[deacon]

This tax is totally idiotic. n/t

[rhett o rick]

9. Your argument isnt very compelling. Care to elaborate? Arent most taxes idiotic? nm

[krabigirl]

10. Agreed

[deacon]

5. This tax is totally idiotic. n/t

[demos9]

8. Amazon's argument is a joke--it has facilities all over the state

No corporation should be allowed to evade laws by simply
setting up subsidiaries and calling them separate companies.
Amazon has operations in at least seven CA cities, as shown
[link:www.amiba.net/resources/news-archive/amazon-nexus-subsidiaries|here]

[itsrobert]

12. +1000

All these people that are against it are just bloggers who make $10 to $500 a month on their Amazon click on their blogs. How many claim this income on their tax forms? Not many.

[christx30]

14. When I do extra work

like helping someone move on craigslist, I don't claim that. No real reason why I should.
That's a nice supplement that helps my kids eat. No reason any government authority should get a dime of that.

[kelly1mm]

15. Then you are a tax cheat. All income from any source must be reported. nt

[DainBramaged]

21. Tell that to General Electric

:eyes:

[itsrobert]

22. Yup. Noticed he was trying to rationalize.

Many rich people do the same. We should all pay our fair share. Including Amazon affiliates.

[christx30]

23. Give it to the government for them to piss away?

Or keep it and make things easier for my kids and I? Not much of a contest. I'm now working 7 days a week to support my kids. If I could work more I would. If I could work under the table to have more, I would. I don't get food stamps or any other government assistance even though I would qualify. I'm not a burden for anyone. I'm a non entity. I give a little bit, anything that they could know about. Anything else is mine.

[kelly1mm]

25. Wow - that sounds very teabagerish. Maybe GE didn't want the government

to piss away their money either.

[christx30]

26. I'm not a tea bagger

but my kids need to eat. I need to pay rent and bills. And helping people move and doing odd jobs on craigslist helps bridge the gap between paychecks so I get to drive to work instead of walk, and we can eat fresh fruits and veggies instead of ramen. Things will get better once my paychecks from Walmart start coming in. And I will be working 7 days a week, which sucks. But my wife gets to stay home with the kids, so it's fine.

And the difference between me and GE is obvious. What they do is perfectly legal because they have lobbiests with congress critters in their back pocket. I'm just a blue collar guy trying to keep my wife and kids alive on $9 an hour.
So it's ok that I work a little harder and not have to report to the government.

[kelly1mm]

28. I will not comment further except to say that you have to do for your

family what you think is right. I hope everything works out for you.

[joeglow3]

20. I bet a lot of rich people say that about the "pittance" they make doing certain things

[itsrobert]

24. Yup, like that $100,000 birthday present from daddy

it's not income, it's a gift. :sarcasm: