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To: gwilhelm56
I saw nothing in the article to suggest what you said.

According to the article:

“Amazon.com was asked to play by the same rules and has responded by eliminating hundreds of Texas jobs,” said Danny Diaz, a spokesman for the Alliance for Main Street Fairness in Washington, D.C. “Amazon could have chosen to collect the sales tax as Texas retailers do, but instead they opted to protect their special sales tax loophole to the detriment of hardworking families.”
The dispute is over whether the distributer gives Amazon a physical presense, which would then require they they collect sales tax for purchases made by residents.

Amazon insists that the distributer is independent:

Amazon, with $25 billion in sales last year, has operated the Irving center since 2006. It argues that a subsidiary company owned the center. The state audited Amazon after reporting by The Dallas Morning News questioned whether the retailer was complying with state law.
But now they claim they will close the distributer. Which means that they have direct control over it, which means it is hard to argue that it is independent.

Texas is asking for $269 million in unpaid sales tax, for sales over multiple years. Amazon had $25 billion in sales; if Texas was going after all of that, the amount due would be $1.25 billion a year. So clearly they aren't trying to tax ALL sales.

According to another article: "The state says that Amazon is responsible for the tax it has not collected on online sales made in Texas. The $269 million includes the taxes, plus penalties and interest, from 2005 to 2009."

Note that this is $269 million that people in texas owed on items they purchased; that $269 million is made up by the other texas residents who don't cheat on their taxes.

Note also that that $269 million, when not collected by Amazon, is then the responsibility of the individual residents. Unfortunately, since Texas has local sales taxes, it's a bit complicated for the residents when Amazon doesn't do the job of collecting the sales tax.

Texas residents should follow this process: Sales and Use Tax

Also FAQ for Texas Use Tax:

You used property purchased from an out-of-state retailer. In general, if you purchase a taxable item from an out-of-state retailer without paying Texas tax and use the property in Texas the purchase is subject to use tax and must be reported. If you paid Texas use tax to such a retailer, you are not required to report the tax. That retailer must provide you with a receipt showing, among other things, the amount of use tax collected. You should retain a copy of the receipt showing you paid Texas tax.

...

Do I owe tax on goods purchased via mail-order catalogs or Internet merchandise?
Yes. A seller who uses catalogs or the Internet to sell goods is treated the same as any other seller of taxable items. If you purchase merchandise through a catalog or the Internet from a seller located in Texas, you owe Texas sales tax on the purchase. If you purchase merchandise through a catalog or the Internet from a seller located outside of Texas and use the taxable item in Texas, then you owe Texas use tax on the purchase. An out-of-state mail-order company or an Internet company may hold a Texas Sales and Use tax permit and collect Texas tax. If the out-of-state seller does not have a Texas permit or does not collect Texas use tax, the use tax is due and payable by the purchaser.
...
If you do not hold a Texas sales and use tax permit and you bought items on which the seller did not collect Texas sales or use tax, you must report your purchases on form 01-156, Texas Occasional Use Tax.

Use Tax Form:
When to File: This return, with payment, should be filed on or before the 20th day following the period (month or year) during which items subject to use tax are brought into the Texas.
Imagine having to fill out this form once a month, every time you make a purchase from Amazon. But that is what Amazon is forcing it's Texas customers to do, by not collecting the tax for them.

The only people who benefit from this, are TAX CHEATs. I guess I could do that hysterical rant "Am I fn Free Republic? Or am I in the Democrat Zone, where we cheer people who cheat on their taxes????" But I won't, because there is a weird disconnect when it comes to discussing this issue -- conservatives who would NEVER think to cheat on other taxes, defend their right to cheat their own state out of legally required tax payments.

WHich also cheats their fellow state residents, since they have to pay more taxes to make up for the tax cheaters.

33 posted on 02/11/2011 7:50:58 PM PST by CharlesWayneCT
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To: CharlesWayneCT

As a small Texas business who reports to the State Comptroller, I will be most surprised to learn, with certainty, of any Texas “use tax”. The Comptroller collects “sales and services” tax in Texas.

Maybe Virginia has such a use tax.


41 posted on 02/11/2011 8:49:35 PM PST by dusttoyou ("Progressives" are wee-weeing all over themselves, Foc nobama)
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