Amazon Tax

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So it would seem it's finally passing, which also means I'll be buying a lot less from Amazon now unfortunately.

I really hope Amazon will fight back and not just talk big but do nothing about it as they have done in the past with the other states.

As much as I like Amazon, they need to step it up.
 
I assume your talking about the great socialist state of California?
Yeah, I think it passed as part of the budget deal. My wife's grandma lives in Arizona so ill just order a crap load of stuff and pick it up there.
 
When NY forced Amazon to tax us here my purchase rate dropped significantly. My purchase rate at newegg also went up for the same reason. It's too bad Amazon can't stand up for customers like newegg did.
 
I felt the same but luckily my 3x ECA discount is still active, I still had Amazon Prime and I have a good amount of Amazon credit anyways.
 
[quote name='ssjmichael']When NY forced Amazon to tax us here my purchase rate dropped significantly. My purchase rate at newegg also went up for the same reason. It's too bad Amazon can't stand up for customers like newegg did.[/QUOTE]

Amazon hasn't gave up on NY. They are still suing the state.
 
Yup, Amazon will be losing my money. Not sure Cali thought this through. Can't generate tax when people don't buy. People not buying hurts the economy. Hurt economies are bad for recessions. Why can't people grasp that making people spend more in a recession makes them buy less?
 
This sucks even more for small business owners. Everyone in California (inc myself) have had their Amazon Associates account terminated. Now I can't make any money off of being an affiliate. >:/
 
[quote name='62t']Amazon hasn't gave up on NY. They are still suing the state.[/QUOTE]


As far as I know the last case was in 2009 and Amazon lost. Perhaps there's an ongoing appeal, but in the meantime, if Amazon really cared enough they would cover the taxes for us, or at the very least split the cost. If I only had to pay half of this bullshit tax I'd certainly look at them in a better light.
 
[quote name='ssjmichael']As far as I know the last case was in 2009 and Amazon lost. Perhaps there's an ongoing appeal, but in the meantime, if Amazon really cared enough they would cover the taxes for us, or at the very least split the cost. If I only had to pay half of this bullshit tax I'd certainly look at them in a better light.[/QUOTE]

Amazon lost in the lower court, but is appealing. All the tax they are being forced to collect has been put in escrow pending results of litigation.

Wouldn't surprise me if this eventually makes its way to the Supreme Court.
 
Pretty sure Amazon's plan for tomorrow is to not start collecting the taxes. As a result, they notified affiliates in California that today is their last day.
 
Paying CA tax for good bought from other states makes me extremely pissed.

Paying taxes for the state in which the good was sold from though, I would be perfectly fine with. But when you think about it too hard, how the hell do we pay to pay for goods? It feels weird.
 
[quote name='ssjmichael']As far as I know the last case was in 2009 and Amazon lost. Perhaps there's an ongoing appeal, but in the meantime, if Amazon really cared enough they would cover the taxes for us, or at the very least split the cost. If I only had to pay half of this bullshit tax I'd certainly look at them in a better light.[/QUOTE]Maybe they should pay for our items to. :roll: Yes tax sucks. but I just find it ridiculous that people would turn the other way all because of tax.
 
[quote name='Xevious']The sales tax here in Berkeley is something like 9.875%

That's pretty brutal.[/QUOTE]

It was 10% at Union City.
 
[quote name='ssjmichael']As far as I know the last case was in 2009 and Amazon lost. Perhaps there's an ongoing appeal, but in the meantime, if Amazon really cared enough they would cover the taxes for us, or at the very least split the cost. If I only had to pay half of this bullshit tax I'd certainly look at them in a better light.[/QUOTE]

Yeah, maybe Wal-Mart, Target, K-Mart, etc. should all pay half or all of the tax for us too...:roll:

Maybe the fact Amazon usually always has some of the cheapest prices available affords a bit of room for you to pay tax on it. If you bought a game at Target for $59.99 plus 7-10% tax you'd pay around $64 give or take. If you buy it from Amazon for $49.99 you can still pay the tax and be getting it a lot cheaper. There is no reason for Amazon to be paying our tax. That would be like your company paying your income tax for you.
 
Not for nothing, but weren't you all supposed to be paying sales tax on everything you bought online anyways for years now? Here in IL, and I assume with you in CA you were supposed to pay all sales tax on online purchases when you filled you state income tax form.

If so, this isn't really a shift in policy or theory, its just forcing you to pay the taxes that you were already LEGALLY OBLIGATED to pay.
 
[quote name='zshipp']Not for nothing, but weren't you all supposed to be paying sales tax on everything you bought online anyways for years now? Here in IL, and I assume with you in CA you were supposed to pay all sales tax on online purchases when you filled you state income tax form.

If so, this isn't really a shift in policy or theory, its just forcing you to pay the taxes that you were already LEGALLY OBLIGATED to pay.[/QUOTE]

This is true, legally they were supposed to be putting all their online purchases in their tax forms and paying taxes on them already, if you don't you're breaking the law(stupid law or not).

You can't have it both ways, you want public services like schools, police, fire departments, roads, etc, but you don't want to pay for it? it doesn't work like that.(And let's not get into the inefficiency of the government, that's a whole other argument).
 
[quote name='JaredFrost']This is true, legally they were supposed to be putting all their online purchases in their tax forms and paying taxes on them already, if you don't you're breaking the law(stupid law or not).

You can't have it both ways, you want public services like schools, police, fire departments, roads, etc, but you don't want to pay for it? it doesn't work like that.(And let's not get into the inefficiency of the government, that's a whole other argument).[/QUOTE]

I'm glad people in other states and countries have time to read the West forum and share their local perspective.

When people are shopping online they aren't driving to a store and back, which places less of a burden on roads, fire and police. And yes, just pay me what I ask for without getting into my inefficiency - that's a whole other argument. I'm sure that works like a charm with your boss at work.

And speaking of having it both ways: those big box stores that complain they cannot compete with Amazon because of the sales tax collection issue, and insist that Amazon be forced to collect sales tax to level the playing field - when their demands are met, they're all going to start price-matching Amazon, right?
 
I'm just amused at all of the outrage from people who think this is some new jackass policy or new money-grubbing from the state government when if you haven't already been paying the tax you've been breaking the law for years now.

As to your other point, the packages you order don't magically teleport to your front door from out of state. The package delivery services use those same roads and airports, chief. Should they not contribute to their upkeep?
 
You won't notice the difference in time and you'll get used to it. Imagine someone taxing over 30% of your hard earned income for the benefit of those who don't want to work (and the handful of people who actually need some assistance), now that is robbery. How about paying over $1000 a year in school taxes when you don't even have kids, and even if you do you wouldn't send them to the awful public schools anyway? NY has had the Amazon tax for years now and while it sucks their prices are still better than anywhere else since there is no way other than Newegg to escape the NY tax burden.
 
[quote name='zshipp']I'm just amused at all of the outrage from people who think this is some new jackass policy or new money-grubbing from the state government when if you haven't already been paying the tax you've been breaking the law for years now.

As to your other point, the packages you order don't magically teleport to your front door from out of state. The package delivery services use those same roads and airports, chief. Should they not contribute to their upkeep?[/QUOTE]

I don't think it's a new policy. It is a new policy. Amazon and other out-of-state merchants without physical presence in CA were not required to collect sales tax before.

As for the packages, good point: I forgot that by shopping from home or work, it means packages have to be transported there, while the goods we buy at B&M just magically teleport there.
 
[quote name='gantt']
As for the packages, good point: I forgot that by shopping from home or work, it means packages have to be transported there, while the goods we buy at B&M just magically teleport there.[/QUOTE]

:roll:
 
This is why 3rd party sellers are making alot more $$ then Amazon is because of the taxes
 
[quote name='gantt']I don't think it's a new policy. It is a new policy. Amazon and other out-of-state merchants without physical presence in CA were not required to collect sales tax before.

As for the packages, good point: I forgot that by shopping from home or work, it means packages have to be transported there, while the goods we buy at B&M just magically teleport there.[/QUOTE]


Okay, its new that you are supposed to pay at point-of-sale, but its not new that you are supposed to pay sales tax on all online purchases. If you haven't been paying when you file your state income tax forms, you've been breaking the law.

Nice to know you agree with me. Both B&M and online shippers use your transportation centers and would both would have obligation to contribute to their upkeep from a utilitarian point of view.
 
[quote name='gantt']I don't think it's a new policy. It is a new policy. Amazon and other out-of-state merchants without physical presence in CA were not required to collect sales tax before.

As for the packages, good point: I forgot that by shopping from home or work, it means packages have to be transported there, while the goods we buy at B&M just magically teleport there.[/QUOTE]

Don't they pay taxes on the fuel used on vehicles of transportation?
 
[quote name='Hybrid5006']Amazon Tax in exchange for Legalized Medical Marijuana ... karma[/QUOTE]

Or just Move to Colorado and have no Amazon tax and a MUCH better MMJ set up. ;-)
 
Coming soon to California, the Amazon Taxpocalypse! In your favorite webstore September 15.

CNN article mentioning other states as well.
California, for instance, agreed last fall to push back the requirement that Amazon collect tax until Sept. 15. In exchange, the company agreed to create at least 10,000 full-time jobs and hire 25,000 seasonal employees in the Golden State by the end of 2015.
 
There are some potential positives that could come with Amazon being forced to collect tax in all 50 states. They have done a lot to avoid a physical presence in a lot of places, and when they do they just have a warehouse. If they are no longer able to avoid the collecting of sales tax, they will probably become an even better business. They will probably have warehouses in all 50 states so shipping times will be faster. They may even venture into retail space.

They have had a HUGE competitive advantage because of sales tax. But they no longer need it because they have grown their brand and reputation so strongly. I think some of their strategies will change if sales tax collection avoidance is off the table.

Also, OP's assertion that Amazon just talks big and does nothing about it is just flat out wrong. They have heavily litigated the Consitutionality of these state laws.
 
[quote name='Gamelore']I wonder if preorders will be taxed if I make them before the 15th. Hmm.[/QUOTE]

It probably comes down to when it actually ships, or when the charge goes through since Amazon waits until it does.

[quote name='caltab']There are some potential positives that could come with Amazon being forced to collect tax in all 50 states. They have done a lot to avoid a physical presence in a lot of places, and when they do they just have a warehouse. If they are no longer able to avoid the collecting of sales tax, they will probably become an even better business. They will probably have warehouses in all 50 states so shipping times will be faster. They may even venture into retail space.

They have had a HUGE competitive advantage because of sales tax. But they no longer need it because they have grown their brand and reputation so strongly. I think some of their strategies will change if sales tax collection avoidance is off the table.

Also, OP's assertion that Amazon just talks big and does nothing about it is just flat out wrong. They have heavily litigated the Consitutionality of these state laws.[/QUOTE]

A tax-free internet was once a way to make internet commerce competitive. Now that businesses like Amazon are off the ground and running, the law will level it completely. A bit too drastic in my opinion but I don't get to write the laws. A real shame, that. ;)

[quote name='guyblade']Of course, we technically all should have been paying sales tax in the form of http://en.wikipedia.org/wiki/Use_tax on state income taxes anyway...[/QUOTE]

No one likes to talk about it but, yes. We should. I do. But I won't claim to have been 100% perfect in accuracy with mine. And no one else should either because that shit is hard! :lol:
 
[quote name='Gamelore']I wonder if preorders will be taxed if I make them before the 15th. Hmm.[/QUOTE]

When you place the order it says right on that page taxes are only estimated, and the actual tax is determined at the time your credit card is charged.
 
[quote name='caltab']

Also, OP's assertion that Amazon just talks big and does nothing about it is just flat out wrong. They have heavily litigated the Consitutionality of these state laws.[/QUOTE]

Plus negotiating a one year delay in implementing the tax in return for adding warehouses in CA. So buyers in CA will get a lot more stuff next day because it is shipping locally.
 
I think if online purchases will be taxed on Amazon.Com then government vehicles should have to buy a vehicle tax sticker each year, not sure why they get exempt, that is not fair either
 
[quote name='sbains']I think if online purchases will be taxed on Amazon.Com then government vehicles should have to buy a vehicle tax sticker each year, not sure why they get exempt, that is not fair either[/QUOTE]

Judge Dredd: I am the law.
 
The reasoning the supreme court used was that removing the requirement of physical presence would violate the commerce clause and be overly burdensome on companies because every state has different taxing standards and regulations. It's harder today to make the argument it's overly burdensome on a gigantic corp like Amazon. Also, it has always been possible for congress to step in and remove the physical presence requirement without violating the commerce clause since that only limits what states can do.
 
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