"Amazon Tax" passed in Illinois

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Caddywompus21

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This will probably happen more and more with states having budget issues and trying to find ways to generate revenue. Making sure they receive sales tax revenue is certainly one way to accomplish that.

Illinois is a state in particularly bad straits at the moment, so this isn't surprising.
 
This is a good thing. Everyone should be paying tax on Amazon purchases, whether that occurs at the time of sale or annually with state income tax. Forcing it up front means less people skimping and more revenue for states to help run the day-to-day that so many of us ignore.
 
Already paying tax on Amazon purchases here in KS. Still more convenient to buy w/ Amazon Prime than to go to walmart and fight the rednecks.
 
I read up on the issue and here's what's gonna happen: On April 15th Amazon.com will drop Illinois affiliates. Those affiliates were people or companies that would have amazon ads on their web site or blog. When someone would click on said link, the affiliate would recieve a commision. This is no longer going to be the case thanks to Gov. Pat Quinn since he wants anyone in Illinois to pay tax on amazon transactions.

Apparently consumers will still be able to buy off of amazon without paying tax. The damning part of it is going to affect those who relied on amazon commisions through links on their website. This is supposed to help Illinois how?

Source: http://online.wsj.com/article/SB10001424052748704399804576193212782052704.html
 
[quote name='VANDALHEART']I read up on the issue and here's what's gonna happen: On April 15th Amazon.com will drop Illinois affiliates. Those affiliates were people or companies that would have amazon ads on their web site or blog. When someone would click on said link, the affiliate would recieve a commision. This is no longer going to be the case thanks to Gov. Pat Quinn since he wants anyone in Illinois to pay tax on amazon transactions.

Apparently consumers will still be able to buy off of amazon without paying tax. The damning part of it is going to affect those who relied on amazon commisions through links on their website. This is supposed to help Illinois how?

Source: http://online.wsj.com/article/SB10001424052748704399804576193212782052704.html[/QUOTE]

It is not going to help the state. The state lose any tax money they get from affiliates, and they still don't get any tax from purchase. Amazon does this to every state that's wants to charge them tax.
 
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Im not sure I get how this is going to help if Amazon simply cuts ties with the affiliates (which is what they're doing). Where is this supposed 170 million going to come from when nobody is paying a penny since they're no longer affiliates?

To me it seems like the state of IL is mad because they're broke and Amazon doesn't have to charge sales tax to consumers like other places such as BB and Walmart.

IL knows that the consumers are buying from Amazon but arent paying/going to pay the use tax they're supposed to, so the state is just going to do whatever they can to piss Amazon off and push them away, trying to get people to buy elsewhere and so pay state sales tax.
 
If a state is smart, they can make millions by offering tax break to get those affiliates to move to their state.
 
[quote name='thelonepig']This is a good thing. Everyone should be paying tax on Amazon purchases, whether that occurs at the time of sale or annually with state income tax. Forcing it up front means less people skimping and more revenue for states to help run the day-to-day that so many of us ignore.[/QUOTE]
You missed the part where Amazon terminated all affiliates, i.e. Illinois is not getting paid shit. If anything, they just lost more income with the move because said affiliates are now moving outside the state to resume business. Texas tried to pull the same thing by citing a warehouse within the state. Amazon responded by shutting the place down and moved elsewhere. Unless all states passed a similar law at the same time, all they're doing is shooting themselves in the foot by driving business elsewhere.
 
PA is in the process of trying to get Amazon to start charging bs sales tax now as well.:roll: It happened first with Gamestop a couple of years ago. I went from being untaxed on purchases made solely with store credit to losing 6% of a gift card's value because the state of PA can't budget their money properly. fuck that.

That's why I hope Amazon fights their attempts to have them collecting state sales tax tooth and nail.
 
It's going to happen sooner or later... as someone in Illinois, I'm not surprised. But it's not really a law for tax collection, it's because Amazon has affiliates within the state (so the state's arguing that Amazon is technically doing business within Illinois). So if Amazon cuts ties with its Illinois affiliates, then they no longer need to collect taxes.

I say it's better this way. It's too much of a hassle to report all online transactions on when you're preparing your taxes like people are supposed to... and I doubt anybody does it. And I'm amazed by how people deny that you shouldn't have to pay taxes for stuff bought online...:lol:
 
[quote name='SlammedNiss']Already paying tax on Amazon purchases here in KS. Still more convenient to buy w/ Amazon Prime than to go to walmart and fight the rednecks.[/QUOTE]

You know, I've thought about what would happen to me if out of state internet taxes were charged on all future online purchases. I'd probably still do a good portion of my business online just to avoid the hassle of going to a crappy brick and mortar store, the price of gas and time lost driving to a store being a consideration. And for certain items, I don't WANT to buy them from B & M store (example: children's books. If you ever saw what children do to books in B&M bookstores, I guarantee you will never want to buy another item off the exposed shelf of an open to the public B&M Barnes and Noble, ever again. Or check them out from a public library. And I am NOT a germaphobe either.). And seriously (at least for me)--there is no joy in physically shopping at places like Walmart or Best Buy on the weekends or in the evenings just due to the other annoying customers.
 
The state wants the TAX money.
Amazon wants the consumer money.
Amazon knows the states that enforce any tax for online purchases at the moment of buying is going to hinder (wont kill it) their business.
That 6-9% upfont is a big draw for most.
 
[quote name='Vinny'] And I'm amazed by how people deny that you shouldn't have to pay taxes for stuff bought online...:lol:[/QUOTE]

Wait... what?

Your amazed by the argument that people should or should not pay tax on online purchases?

I think you mean to say your amazed by ppl that argue that they should not be paying tax on online purchases. But your wording can also be interpreted the other way.
 
The irony is that even IF amazon charge 6.25% tax, I will STILL stop there over best buy due to 10.25% at Chicago and Amazon has better deal than Best buy 99% of the time. It is not tax that drive people online, it is the sales...
 
I guess if I'm going to buy that 3D TV I'd better do it before Texas starts forcing Amazon to charge tax...I don't know about Illinois but I'm not buying into the idea that the state of Texas is spending our taxes responsibly when Rick Perry's (The governor) rental mansion cost the state 600,000 big ones.
 
I'm more concerned with Illinois than with with me having to pay sales tax, which I don't really mind. Looks like they'll lose alot of businesses this way.

And am I the only person who thinks it's a little douchey on Amazon's part leaving affiliates out in the cold?
 
[quote name='crzyboy88']How exactly do you "easily move to another state"? I figure this would be a lot more trouble than it's worth.[/QUOTE]

You have to remember that the majority of the money going to the affiliates is going to a handful of them. It's not hundreds of thousands of affiliates Amazon's giving the big bucks to. It's probably just a handful of well-established companies that figured out how to get their affiliate links out there. Those affiliates make enough money off of Amazon to justify moving out of the state and all associated costs.

Take FatWallet for example. They make hundreds of thousands, if not millions of dollars off of Amazon affiliate links. All they are going to do is move from one state to another and now Illinois is left with no income tax on FatWallet. In a case like this, the money Fatwallet makes from Amazon is more than enough to cover the cost of moving.

The only way this government is going to get rid of all these stupid arguments over whether state sales tax is allowed or not is to abolish state sales tax all together and add on a Federal Sales Tax that is standard across the entire country. Kind of like a VAT tax in the U.K. and other countries.
 
[quote name='JoshTX']I guess if I'm going to buy that 3D TV I'd better do it before Texas starts forcing Amazon to charge tax...I don't know about Illinois but I'm not buying into the idea that the state of Texas is spending our taxes responsibly when Rick Perry's (The governor) rental mansion cost the state 600,000 big ones.[/QUOTE]


fuck Rick Perry and his hair.
 
[quote name='Tsel']Well I'm moving.[/QUOTE]The change means nothing unless you're a business owner.
[quote name='drktrpr1']And am I the only person who thinks it's a little douchey on Amazon's part leaving affiliates out in the cold?[/QUOTE]
Some affiliates already warned Quinn that they would move elsewhere if the bill passed, so Amazon's move was just protocol. It's just business as usual.
 
[quote name='Puffa469']Wait... what?

Your amazed by the argument that people should or should not pay tax on online purchases?

I think you mean to say your amazed by ppl that argue that they should not be paying tax on online purchases. But your wording can also be interpreted the other way.[/QUOTE]

Yeah, sorry, I did mean I'm amazed by people who think they don't have to pay taxes for stuff bought online. One of my :dunce: moments... I seem to be doing that a lot lately.:whistle2:k

Either way, I'm prepared for it honestly.
 
I pay tax on Amazon purchases and I am in NY, and I still buy from Amazon. They are usually cheaper than a B&M store and you don't have to put up with the hassles of a B&M store. Even with the sales tax the item is still usually cheaper than a B&M store.

Ever try to get electronics at a B&M store, its usually at least a 20 min wait for an inferior selection of stuff (it would have to be a darn good deal for me to be buying big expensive electronics at a B&M store). With Amazon, a few clicks and I am done and the item gets delivered right to my door usually with free shipping.

I am not lazy or anything, I do go shopping in B&M stores, its just that I don't like the selection of electronics they carry since they usually only have 4-5 products for any given item when you can choose from possibly hundreds on Amazon. Getting a product with the right features that meet my needs is a priority when I make a large purchase and I just can't find that with the selection that B&M stores carry.
 
tax is the main reason why I make purchases on amazon, just made a big purchase recently. Bought a 40' SOny bravia for $580 shipped, if this was in store I'd be paying about $80 more with CA state tax and recycle fee. CA is pretty bad as it is as we have the highest state tax and income tax.
 
Hmm, I really hate you, Quinn! I'll still shop at Amazon.com, if it's cheaper than B&M prices. I do hope other online retailers like Buy.com and Newegg.com, frequently price match Amazon. I will be able to get free shipping and avoid paying sales tax, through those websites...;)
 
I encourage all Illinois people and businesses fed up with that state to come to Indiana! We have candy...

And no sales tax on Amazon stuff! :)
 
No real surprise here, unfortunately. States need money, and they know there's a lot of it due to them in the area of online sales. And this will definitely continue. After all, it usually takes awhile for the law to catch up with technology.
 
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