Posted on 02/16/2010 10:07:07 AM PST by rabscuttle385
Legislation requiring online retailers to collect Virginia's 4.5 percent sales tax -- the so-called "Amazon Bill" -- easily cleared the Virginia Senate this morning and is headed to the House of Delegates, where opponents hope it falls prey to that chamber's hostility to taxes.
Senate Bill 660, by Republican Emmett W. Hanger Jr. of Augusta, was approved, 28-12.
The measure is a priority among traditional, bricks-and-mortar retailers, who say they can't compete with online businesses that currently don't have to collect the tax on Virginia sales. Foes say the legislation is a jobs-killer; that it would force Internet businesses here to close.
(Excerpt) Read more at 2.timesdispatch.com ...
LET THE NOVEMBER RINO HUNT BE A SMASHING SUCCESS!
McDonnell had better veto this garbage if it somehow passes the House of Delegates.
Any RINO — anywhere — that supports such legislation automatically loses my vote.
I see the day where all internet sales will be taxed.
And NO I don’t want to see the day but local interests will push the issue to get their fair (unfair) share of taxes from sales.
My state is on the honor system right now - and I do keep track. Comes to about $30 +/- a year. Saved a whole lot more than that by driving out to get the items.
Taxes for WHAT?!? Vermont provides nothing to Amazon to operate their internet business, so how can they expect to take a cut of each sale? The roads used to deliver the merchandise are maintained through fuel taxes, right?
I am republican and conservative, but I agree with this sales tax bill, even though it will cost me money.
One step closer to Internet “regulation”. Nose under the tent, next thing you know Google will be teaming up with the NSA to keep tabs on FReepers.
So how is this different from the 4.5% sales tax that Virginians pay for non-internet purchases?
If anyone doesn’t understand what this is about, just watch a bunch of pigs at a feeding trough. There are far more than enough buyers for both kinds of vending, Some people will not buy online, probably more than those who do. The bricks and mortar guys are just like those pigs. They want it first, most and all if possible.
I sure Amazon could remedy this real easy if this passes. Then Virginia will be out both sales tax revenue and the hundreds of jobs that Amazon takes when it moves it's "physical presence" from Virginia.
Democrats have a small majority in the VA Senate. How many aye votes were Republican? Just curious as to exact number of RINOs.
What the hell do republicans not understand about NO MORE TAXES.
Senator Steve Martin, arguably one of the most conservative voices in the Senate, voted for this bill, and said that it had substantial business support.
Senator Martin said this on his Facebook page:
I just voted for sb660 (passed 28-12). Some will represent it as a tax increase but it is not. It is a compliance/equity issue. I oppose a new tax on internet purchases, but where the nexus already exists with the entity selling the product having a physical presence in VA, the sales tax is supposed to already be collected and remitted, just as my retail constituents must do. This bill clarifies to assure compliance.
It is only a clarification as what qualifies as a dealer/agent of a sale (as if it wasn't already clear). It would only bring in $17 million more and the list of pro-business, small business, chamber, etc. groups that support it is huge. I hate to disappoint the 2-3 conservative groups that intended to exploit this as being a tax increase, but it is not. If it were not an equity/compliance issue, I would have voted "no" out of a desire to force more spending cuts. But, the present practices by some businesses is unjust and already a violation of law.
I'm not sure I agree with him. But Steve is definitely no RINO, not in anyone's world.
Impossible.
>So how is this different from the 4.5% sales tax that Virginians pay for non-internet purchases?<
Ever heard the term, “shipping”? You don’t pay a separate fee for it when you walk into Wal-Mart, but you sure pay it when you shop Amazon, eBay or any other internet business.
But you generally DO pay tax on shipping if you have something shipped, even if it's from a physical store to your home, so long as its going through a commercial shipper. Apples and apples.
I think the main problem for those who are complaining about this bill is that they're essentially asking the government to continue to give preference to one set of retailers (internet-based) over another set (bricks and mortar). That's a problem, from an "equality under the law" perspective. We'd complain if it was Obama using the power of government to give a set of his cronies in one business advantages over their competitors, yet because it's framed here as a "tax" issue, suddenly we have no problem with essentially doing the same thing.
sales tax vs. shipping charges
apples vs. oranges
Even if you disagree with this, that’s just not a valid comparison.
Well, isn’t the answer to all of this obvious?
Repeal the sales tax in its entirety!
>sales tax vs. shipping charges
apples vs. oranges<
I can see your point, but the fact remains that the lack of tax when buying online is offset by the presence of shipping cost. This is from a consumer point of view. I don’t care if the extra I pay from brick vs online is shipping, or tax. I do, however, most definitely feel it in the wallet if I have to pay both.
Whatever! Believe what you want!
As the owner of an online business I can guarantee you that if this passes we will no longer sell to or ship to VA. We will simply refund all purchases from customers who want us to ship to that State. We are NOT going to take on the burden of paying some State’s sales tax!
Re ‘shipping charges”
What does it cost to drive to WalMart? You have gas/wear and tare, etc. IRS allows deductions of $0.14=$0.50/mile for fixed and flexible costs of operating a vehicle. Not that trips to WalMart are deductible.
Or what is your time/labor worth? You have to drive to WalMart, schlep through the store, wait in line at the checkout, then drive home?
Is that worth any more or less than an online outfit’s shipping charges? Most online retailers offer free shipping with purches over a certain amount, and as I recall, it’s not much ($25?) at amazon.
Ummm...unless you’re a Virginia based business, you wouldn’t be charging Virginia sales tax. Don’t you deal with California sales tax?
The only way Oklahomans get away with not paying sales tax on Amazon is that they are located in TX not OK or we would be paying as well.
>> Taxes for WHAT?!? Vermont provides nothing to Amazon to operate their internet business, so how can they expect to take a cut of each sale? The roads used to deliver the merchandise are maintained through fuel taxes, right? <<
Internet Commerce is the Goose that lays Golden eggs, and the libs are hungry for fois gras....
It sure sounds like this could be the outcome. Didn't Amazon recently terminate all NY affiliates when NY tried the same thing?
I say you're a liar.
Yeah and that is headache enough!
That quite something harsh for you to say FRiend! But it does not change who I am or what I believe!
“But Steve is definitely no RINO, not in anyone’s world.”
In MY world, and he’s my Senator, he just made himself a RHINO.
and he sold out so cheap.!
Well, I’ve known him for over 20 years, have followed his career and campaigned for him. He’s my Senator as well.
I don’t think I agree with him on this issue. But that doesn’t make him a RINO.
Your mileage may vary. But if he’s also your Senator, I suggest you let him know how you feel. At the very least, I know he’ll explain his vote to you. Don’t judge him based on this article alone.
Update. Bill tabled in committee.
Is it dead, Jim?
In VA you already have to report your internet purchases. In fact, some online retailers such as Neiman’s, Underarmour, and Nike have begun to collect sales taxes on purchases.
For this year, yes.
:0)
I agree that it is unfair to local businesses to shoulder the tax and lose sales to online stores.
I’m not really fond of the idea of changing the system, but it is unfair.
To 36 - Very well put opinion of this matter and our state senator. Though I will be writing him stating my displeasure of his vote on this ‘compliance’ issue. At the end of the day it is still 4.5% more I’ll have to pay for online purchases. And I might also ask him when a bill is to be introduced that revokes the toll on the Powhite Pkwy. I’m pretty sure the costs of constructing this road has been recovered.
All this BS about local gummints providing "services" that justify collection of sales tax is just that. B&M stores also pay property tax, income tax and, in many states, an inventory tax that more than makes up for the police and fire protection local governments provide.
If these politicians targeting internet sales were really interested in "equity" rather than boosting their state's tax receipts, they'd begin discussing lowering or even eliminating sales taxes, which are among the most regressive forms of taxation. Yet, because of that unholy alliance between business and government, sales tax rates continue to increase with only token opposition, making families with limited incomes have to settle for just one HDTV instead of two.
That's actually true for most states, even Texas. It's called a 'use tax.'
Pubbies need to get the message....the problem here ain’t the lack of taxation!!!!
I am republican and conservative, but I agree with this sales tax bill, even though it will cost me money.
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Yeah and I bet you think Colin Powell is one too. Give me a break.
McDonnell had better veto this garbage if it somehow passes the House of Delegates.
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Exactly. With a big stroke of his pen.
No, I definitely do not think Powell is a true conservative. I think he leans democrat for sure. He is just in the closet. But I know I am, a true conservative and a Republican to boot. I also believe fair is fair with the online retaliers and the b&m stores as far as taxes go. Why do you feel the online stores should not have to collect sales tax when every b&m store is required to do so?
I am opposed to this tax. Virginians who travel by plane, train or car to another state and do some shopping are not obliged to render tax payments to Virginia nor are the merchants they buy from.
I may from time to time choose to reach through cyberspace to shop from home. I see no difference.
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