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Internet Giants Mull Calif. Pullout to Avoid Taxes
Newsmax ^ | June 1, 2011 | Martin Gould

Posted on 06/02/2011 7:30:40 AM PDT by Qbert

Internet companies such as Amazon and Overstock are threatening to pull out of California rather than collect state sales tax on tens of millions of dollars worth of business, the Los Angeles Times reports.

The move comes after the Golden State’s Assembly passed a law expanding the tax to Internet sales for companies that have a physical presence or sister companies with offices there.

The move passed the Democrat-controlled lower house on Tuesday on a 47-16 vote. It now goes to the Senate.

[Snip]

One Republican voted with the majority. The rest rejected the move saying it would drive business out of California and invite lawsuits. GOP Assemblyman Shannon Grove called the move “just another tax grab.”

[Snip]

The state sales tax rate is currently 8.25 percent with local taxes adding as much as a further 2.5 percent.

(Excerpt) Read more at newsmax.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: calegislation; internettaxes; salestax; taxes

1 posted on 06/02/2011 7:30:42 AM PDT by Qbert
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To: Qbert

ha ha


2 posted on 06/02/2011 7:34:24 AM PDT by yldstrk (My heroes have always been cowboys)
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To: Qbert

Here in California, pretty much everything is taxed by at least three entities, state, county and local. Then there are “fees” and other gov revenue sources that are not called taxes. Yet gov at all levels still whine about not having enough money.


3 posted on 06/02/2011 7:38:40 AM PDT by Wolfstar ("If you would win a man to your cause, first convince him that you are his friend." Abraham Lincoln)
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To: Qbert

the teachers unions here in PA are running an absolutely hilarious radio ad trying to convince the average joe to call his State Senator and ask them to do the same here.


4 posted on 06/02/2011 7:41:32 AM PDT by Buckeye McFrog
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To: Qbert

Everything that isn’t perishable and that I have some time to wait for delivery, I buy on Amazon. If they start having to charge sales taxes, I’ll drop them like a hot potato, period.


5 posted on 06/02/2011 7:43:28 AM PDT by Gaffer
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To: Qbert
Is it me, or does this sound a lot like the Boeing 787 move? You can bet there will be all sorts of unions, community organizers, Democrats, and other thugs that "won't allow" these companies to move.

Why would any new company set up shop in California?

6 posted on 06/02/2011 7:44:19 AM PDT by Lou L (The Senate without a fillibuster is just a 100-member version of the House.)
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To: Gaffer

given the internet, we may eventually be buying via internet from outside the USA to avoid the confiscatory taxes.


7 posted on 06/02/2011 7:48:59 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Qbert

Internet Giants Mull Calif. Pullout to Avoid Taxes?

Taxus Interuptus?..............


8 posted on 06/02/2011 7:49:13 AM PDT by Red Badger (Jesus said there is no marriage in Heaven. That's why they call it Heaven............)
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To: Lou L
Why would any new company set up shop in California?

You can check out any time you want, but you can never leave...(What was the name of that Hotel?)

9 posted on 06/02/2011 7:49:44 AM PDT by Tex-Con-Man
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To: Qbert
Internet companies such as Amazon and Overstock are threatening to pull out of California

Just do it! Even the threat of new taxation should be sufficient for them to pull the plug if only for a week or a month to let it sink in. Once the Internet becomes a direct revenue stream for the government, there will be no end to the micromanagement built into it. Keep the Internet free and safe.


10 posted on 06/02/2011 7:52:32 AM PDT by so_real ( "The Congress of the United States recommends and approves the Holy Bible for use in all schools.")
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To: Gaffer

“Everything that isn’t perishable and that I have some time to wait for delivery, I buy on Amazon. If they start having to charge sales taxes, I’ll drop them like a hot potato, period.”

And there are millions more that will do the exact same thing.


11 posted on 06/02/2011 7:52:34 AM PDT by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
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To: Tex-Con-Man

Oh very good.


12 posted on 06/02/2011 7:52:49 AM PDT by agere_contra ("Debt is the foundation of destruction" : Sarah Palin.)
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To: Buckeye McFrog

Tax the Rich!!!!!!!


13 posted on 06/02/2011 7:54:39 AM PDT by catman67
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To: Red Badger
"Taxus Interuptus?.............."

Or maybe Premature E-Taxulation!

14 posted on 06/02/2011 7:58:48 AM PDT by Mich Patriot (A government agency is the closest thing to eternal life you'll ever see on Earth. RReagan)
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To: Qbert

“If you build it, they will come.”

More like, “If you tax it, they will go”.


15 posted on 06/02/2011 7:59:33 AM PDT by Mich Patriot (A government agency is the closest thing to eternal life you'll ever see on Earth. RReagan)
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To: Qbert; All
"Internet Giants Mull Calif. Pullout to Avoid Taxes"


16 posted on 06/02/2011 7:59:56 AM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: Qbert

There must be thousands of Amazon associated companies in California. If Amazon pulls the plug and moves out of California all of these little California based associated companies will lose there best source of sales and most will simply fail or move out of state.

Net result: Less taxes collected by the State of California.


17 posted on 06/02/2011 8:05:18 AM PDT by InterceptPoint (w)
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To: InterceptPoint

“Net result: Less taxes collected by the State of California.”

Exactly.

Meanwhile, they’ll have 40,000 newly released prisoners wandering the streets...


18 posted on 06/02/2011 8:10:34 AM PDT by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
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To: longtermmemmory
given the internet, we may eventually be buying via internet from outside the USA to avoid the confiscatory taxes.

You'll get hit with tariffs and they'll hold your merchandise until you pay. I ordered some things from the UK a year ago and was very careful to keep my total under the $200 threshold which seemed to be the amount over which you had to pay a tariff. The problem was the company didn't itemize the shipping form and the shipping and handling fee was added on to the value of the merchandise, and hence, I had to pay a tariff when I hadn't before. I complained to the company. I think they now have a notice on their website about this. The whole process made me very wary of buying things from overseas, as the tariff assessment seems to be rather random.

19 posted on 06/02/2011 8:11:40 AM PDT by stayathomemom (Beware of kittens modifying your posts.)
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To: Buckeye McFrog
Yeah, heard that one myself..Love the bits about "benefiting education"...uh-huh...suuuuuuuuure it benefits the "kids", just like our lottery "benefits PA senior citizens".

What a farce.

20 posted on 06/02/2011 8:16:05 AM PDT by Michael Barnes
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To: Qbert

California doesn’t like businesses, except for maybe a few “green” businesses, so anybody who wants to make a (shudder) profit should run, not walk, away from that place as quickly as possible.


21 posted on 06/02/2011 8:24:16 AM PDT by Lancey Howard
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To: stayathomemom

Back in the early ‘80s my wife and I toured Europe and my wife bought some crystal items to bring home. A couple of weeks after we got home we started getting letters and even a phone call from the shop where she bought the crystal. Apparently, they had forgotten to collect the VAT. Since we never heard of a “VAT” and couldn’t get an understandable explanation of what it was for from the guy who called us, we just laughed it off.


22 posted on 06/02/2011 8:30:54 AM PDT by Lancey Howard
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To: catman67

Tax the Rich!!!!!!!

Can’t pull that off here as the PA State Constitution requires all residents to be taxed equally, so our state income tax is essentially a flat tax (which is a wonderful thing, without that I’m sure we would have had a 12% top bracket a long time ago) Gotta look to hide the salami then in various fees and an internet tax.


23 posted on 06/02/2011 8:35:48 AM PDT by Buckeye McFrog
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To: InterceptPoint
Yes, and the associated companies are a bunch of bookstores.

“Liberalism killed the local book store.”

All those pro-socialist liberal book store owners may even question some of their assumptions. maybe.

24 posted on 06/02/2011 8:38:53 AM PDT by allmendream (Tea Party did not send the GOP to D.C. to negotiate the terms of our surrender to socialism.)
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To: longtermmemmory
given the internet, we may eventually be buying via internet from outside the USA to avoid the confiscatory taxes.

For those who want an NRST, this will justify government control over every Internet transaction.

25 posted on 06/02/2011 8:45:08 AM PDT by Carry_Okie (The environment is too complex and too important to manage by central planning.)
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To: Lancey Howard

You would be exempt from paying the VAT, but I suppose since you and the store didn’t fill out the appropriate forms before you left the country, the store probably got left holding the tax bill.


26 posted on 06/02/2011 8:53:27 AM PDT by stayathomemom (Beware of kittens modifying your posts.)
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To: Mich Patriot

When the corporations in CA and other states finally leave for greener pastures, and all the states are left full of unemployable and illegal immigrant welfare recipients, there will be riots and chaos. The beast will demand to be fed. The state government larders will be empty and with no chance of ever filling them again under the present system..................


27 posted on 06/02/2011 8:57:29 AM PDT by Red Badger (Jesus said there is no marriage in Heaven. That's why they call it Heaven............)
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To: yldstrk

Will the last business to leave Kookyfornia please turn out the lights? What a bunch of losers. Yes, I’m talking about the voters as democrat politicians are expected to act stupidly. California is the textbook example of Einstein’s definition of insanity — doing the same thing over and over again expecting a different result.


28 posted on 06/02/2011 9:01:30 AM PDT by jhroberts
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To: jhroberts
Will the last business to leave Kookyfornia please turn out the lights?

I used to work for a California Business called HP, which now has it's corporate headquarters in Delaware the last time I looked. Seems taxes were bad then, so now I am not surprised. Internet business can move quite easily.

They should think of Georgia. We have a pro-business environment here and have not raised taxes like Illinois, Connecticut or some other states. There is low taxes for our citizens (your moved workers) and housing prices are great.

Why stay in Liberalland when you can come back to good old capitalism (used to be called "The American Way").

29 posted on 06/02/2011 9:14:08 AM PDT by sr4402
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To: Lou L
Is it me, or does this sound a lot like the Boeing 787 move?

They just signed a deal to build a brand new warehouse/distribution center in Tennessee creating 1600 jobs in the process. The state tried at the last minute to condition approval of the deal on Amazon collecting state sales tax. Amazon threatened to find a new location. The state relented. And TN is a right-to-work state.

30 posted on 06/02/2011 9:21:27 AM PDT by Tonytitan
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To: Mich Patriot

Excellent work!


31 posted on 06/02/2011 10:04:19 AM PDT by Defiant (When Democrats lose voters, they manufacture new voters instead of convincing the existing voters.)
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To: Tonytitan
Taxes, fees, excises, and tariffs that some or all of us pay:

1. Accounts Receivable Tax
2. Accounting and Tax Preparation fees (cost to taxpayers $300 billion)
3. Accumulated Earnings Tax
4. Accumulation Distribution of Trusts
5. Activity Fee (Dumping Permit Fee)
6. Air Tax (PA coin-operated vacuums)
7. Aircraft Jet Fuel Tax
8. Aircraft Excise Tax
9. Alcohol Fuels Tax
10. Alcoholic Beverage Tax
11. Alternative Minimum Tax - Amt
12. Ambulance Services (Air Ambulance Services, SD)
13. Ammunition Tax
14. Amusement Tax (MA, VA, MD)
15. Annual Custodial Fees (Ira Accounts)
16. Ballast Water Management Fee (Marine Invasive Species)
17. Biodiesel Fuel Tax
18. Blueberry Tax (Maine)
19. Bribe Taxes (Pay If You Dare)
20. Brothel licensing fees (NV - $35,000.00 per year per brothel)
21. Building Permit Tax
22. Capital Gains Tax
23. California Interstate User Diesel Fuel Tax
24. California Redemption Value (Can and Bottle Tax)
25. CDL License Tax
26. Charter Boat Captain License
27. Childhood Lead Poisoning Prevention Fee
28. Cigarette Tax
29. Cigarette Tax Stamp (Acts) (Distributors)
30. Compressed Natural Gas Tax
31. Commercial Activity Tax (OH - for Service Providers)
32. Corporate Income Tax
33. Court Fines (Indirect Taxes)
34. Disposable Diapers Tax (Wisconsin)
35. Disposal Fee (Any Landfill Dumping)
36. Dog License Tax
37. Electronic Waste Recycling Fee (E-Waste)
38. Emergency Telephone User Surcharge
39. Environmental Fee (CA - HazMat Fees)
40. Estate Tax (Death Tax, to be reinstated)
41. Excise Taxes
42. Facility Fee (CA - HazMat Fees)
43. FDIC tax (insurance premium on bank deposits)
44. Federal Income Tax
45. Federal Unemployment Tax (FUTA)
46. Fiduciary Income Tax (Estates and Trusts)
47. Fishing License Tax
48. Flush Tax (MD Tax For Producing Wastewater)
49. Food License Tax
50. Fountain Soda Drink Tax (Chicago - 9%)
51. Franchise Tax
52. Fresh Fruit (CA, if Purchased From A Vending Machine)
53. Fuel Permit Tax
54. Fur Clothing Tax (MN)
55. Garbage Tax
56. Gasoline Tax (44.75 Cents Per Gallon)
57. Generation-Skipping Transfer Tax
58. Generator Fee (Recycled Waste Fee)
59. Gift Tax
60. Gross Receipts Tax
61. Hamburger Tax
62. Hazardous Substances Fees: Generator, Facility, Disposal
63. Household Employment Taxes
64. Hunting License Tax
65. Illegal Drug Possession (No. Carolina)
66. Inheritance Tax
67. Insect Control Hazardous Materials License
68. Insurance Premium Tax
69. Intangible Tax (Leases Of Govt. Owned Real Property)
70. Integrated Waste Management Fee
71. Interstate User Diesel Fuel Tax
72. Inventory Tax
73. IRA Rollover Tax (a transfer of IRA money)
74. IRA Early Withdrawal Tax
75. IRS Interest Charges
76. IRS Penalties (Tax On Top Of Tax)
77. Jock Tax (income earned by athletes in some states)
78. Kerosene, Distillate, & Stove Oil Taxes
79. Kiddie Tax (Child's Earned Interest Form 8615)
80. Lead Poisoning Prevention Fee (Occupational)
81. Lease Severance Tax
82. Liquid Natural Gas Tax
83. Liquid Petroleum Gas Tax
84. Liquor Tax
85. Litigation Tax (TN Imposes Varies With the Offense)
86. LLC/PLLC Registration Tax
87. Local Income Tax
88. Lodging Taxes
89. Lump-Sum Distributions
91. Make-Up Tax (Ohio, applying in a salon is taxable)
92. Marriage License Tax
93. Meal Tax
94. Medicare Tax
95. Mello-Roos Taxes (Special Taxes and Assessments)
96. Minnow Dealers License (Retail - For One Shop)
97. Minnow Dealers License (Distributor - For One+ Shops)
98. Mobile Home Ad Valorem Taxes
99. Motor Fuel Tax (For Suppliers)
100. Music and Dramatic Performing Rights Tax
101. Nudity Tax (Utah)
102. Occupation Tax (Various Professional Fees)
103. Oil and Gas Assessment Tax
104. Oil Spill Response, Prevention, And Administration Fee
105. Pass-Through Withholding
106. Pay-Phone Calls Tax (Indiana)
107. Personal Property Tax
108. Personal Holding Company (undistributed earnings)
109. Pest Control License
110. Petroleum Business Tax
111. Playing Card Tax (Al)
112. Pole Tax (TX - A $5 Cover Charge On Strip Clubs)
113. Profit from Illegal Drug Dealing
114. Property Tax
115. Prostitution Tax (NV - Prostitute Work Permits)
116. Rain Water Tax (Runoff after a Storm)
117. Real Estate Tax
118. Recreational Vehicle Tax
119. Road Usage Tax
120. Room Tax (Hotel Rooms)
121. Sales Tax (State)
122. Sales Tax (City)
123. Sales And Use Tax (Sellers Permit)
124. School Tax
125. Service Charge Tax
126. Self Employment Tax
127. Sex Sales Tax (UT, when nude people perform services)
128. Sewer & Water Tax
129. Social Security Tax
130. Sparkler and Novelties Tax (WV Sellers of Sparklers, etc.)
131. Special Assessment Tax (Not Ad Valorem)
132. State Documentary Stamp Tax on Notes (FL RE Tax)
133. State Franchise Tax
134. State Income Tax
135. State Park Fees
136. State Unemployment Tax (SUTA)
137. Straight Vegetable Oil (SVO) Fuel Tax
138. Stud Fees (Kentucky?s Thoroughbred Sex Tax)
139. Tangible Personal Property Tax
140. Tattoo Tax (AR Tax On Tattoos)
141. Telephone Federal Excise Tax
142. Telephone Federal Universal Service Fee Tax
143. Telephone Federal Surcharge Taxes
144. Telephone State Surcharge Taxes
145. Telephone Local Surcharge Taxes
146. Telephone Minimum Usage Surcharge Tax
147. Telephone Recurring Charges Tax
148. Telephone Non-Recurring Charges Tax
149. Telephone State Usage Charge Tax
150. Telephone Local Usage Charge Tax
151. Tire Recycling Fee
152. Tobacco Tax (Cigar, Pipe, Consumer Tax)
153. Tobacco Tax (Cigar, Pipe, Dealer Tax)
154. Toll Road Tax
155. Toll Bridge Tax
156. Toll Tunnel Tax
157. Tourism or Concession License Fee
158. Traffic Fines (Indirect Taxation)
159. Transportable Treatment Unit Fee (Small Facility)
160. Trailer Registration Tax
161. Trout Stamp (Addendum To Fish License)
162. Use Taxes (On Out-Of-State Purchases)
163. Utility Taxes
164. Unemployment Tax
165. Underground Storage Tank Maintenance Fee
166. Underpayment of Estimated Tax (Form 2210)
167. Unreported Tip Income (Social Security and Medicare Tax)
168. Vehicle License
169. Registration Tax
170. Vehicle Sales Tax
171. Wagering Tax (Tax on Gambling Winnings)
172. Waste Vegetable Oil (WVO) Fuel Tax
173. Water Rights Fee
174. Watercraft Registration Tax
175. Waterfowl Stamp Tax
176. Well Permit Tax
177. Workers Compensation Tax

That's not all of them, but they cover a lot.
32 posted on 06/02/2011 10:04:40 AM PDT by tenger (It's a good thing we don't get all the government we pay for. -Will Rogers)
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To: Red Badger

Agree 100%. There is a real shit-storm on the radar.


33 posted on 06/02/2011 10:07:55 AM PDT by Mich Patriot (A government agency is the closest thing to eternal life you'll ever see on Earth. RReagan)
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To: tenger

BTTT for an important list which I will shortly copy to my files.


34 posted on 06/02/2011 10:09:51 AM PDT by little jeremiah (Courage is not simply one of the virtues, but the form of every virtue at the testing point. CSLewis)
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To: Qbert
It will be like Baja in about 15 years.

Last business to leave California turn out the lights….that is, if the enviro-weenies haven’t banned electricity by then.

35 posted on 06/02/2011 10:12:03 AM PDT by PATRIOT1876 (The only crimes that are 100% preventable are crimes committed by illegal aliens)
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To: Lancey Howard

California likes software companies, because they pay high wages and don’t produce any pollution. The problem is, many in the Legislature have deluded themselves into thinking the whole state economy can be built on nothing but software companies and movie studios, with the “dirty work” being done in some place they consider ugly and backward, like China or Texas. They are learning the hard way that such an economic plan cannot work.


36 posted on 06/02/2011 10:14:15 AM PDT by Mr. Jeeves ( "The right to offend is far more important than any right not to be offended." - Rowan Atkinson)
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To: Red Badger

*When the corporations in CA and other states finally leave for greener pastures, and all the states are left full of unemployable and illegal immigrant welfare recipients, there will be riots and chaos. The beast will demand to be fed. The state government larders will be empty and with no chance of ever filling them again under the present system..................*

If you live in California, the time to sell your $900,000, 1200 sq. ft. house is now!


37 posted on 06/02/2011 10:14:53 AM PDT by PATRIOT1876 (The only crimes that are 100% preventable are crimes committed by illegal aliens)
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To: PATRIOT1876
If you live in California, the time to sell your $900,000, 1200 sq. ft. house is now!

If you live in California, the time to sell your $900,000, 1200 sq. ft. house FOR $250,000 is now!..................

38 posted on 06/02/2011 10:17:43 AM PDT by Red Badger (Jesus said there is no marriage in Heaven. That's why they call it Heaven............)
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To: Qbert

Most of my stuff from Amazon gets shipped in from their warehouse in Nevada. All Amazon will have to do is get rid of their California individual sellers and the state cannot collect the tax. That’s a shame for them but they will be collateral damage to the money hungry Rats in Sacto.


39 posted on 06/02/2011 10:23:08 AM PDT by fifedom
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To: Mich Patriot

I watched “Mad Max”, “Book of Eli” and other such post-apocalyptic movies lately and wondered if they aren’t prophetic.....................


40 posted on 06/02/2011 10:24:21 AM PDT by Red Badger (Jesus said there is no marriage in Heaven. That's why they call it Heaven............)
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To: fifedom

The Rats must know that Amazon will get rid of the individual sellers. I think this is part of a nationwide effort to get Congress to allow them to tax and then get Anthony Kennedy of the Supremes to agree with them. Won’t happen in with the current House but Rats think long term in their drive to convert the US into a socialist utopia.


41 posted on 06/02/2011 10:27:02 AM PDT by fifedom
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To: tenger

You can add Tanning Booth Tax.


42 posted on 06/02/2011 11:05:47 AM PDT by houeto (Rev. 13. [7] And it was given unto him to make war with the saints, and to overcome them:)
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To: so_real

Illinois just pass the same thing, and Amazon pulled out of the state immediately. These companies are not bluffing, but the Dems don’t care.


43 posted on 06/02/2011 11:12:01 AM PDT by kara37
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To: tenger
77. Jock Tax (income earned by athletes in some states)

Up next... a Penis Tax. Comming soon to a state near you!

44 posted on 06/02/2011 11:47:10 AM PDT by Tonytitan
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To: Tonytitan
I'm not familiar with the deal, but just a couple of observations from your comment.

I think collecting sales tax is a slightly different argument than the one the unions are using at Boeing. I could see Tennessee making a rational argument for having Amazon do this.

Having said that, I don't agree with Tennessee's tactics of using a last-minute approach. In this economy, Tennessee should just be happy they could have 1600 new jobs, plus any other auxiliary businesses that might be created as a result of this deal.

45 posted on 06/02/2011 12:18:51 PM PDT by Lou L (The Senate without a fillibuster is just a 100-member version of the House.)
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To: tenger
15. Annual Custodial Fees (Ira Accounts)

I'm pretty sure that's NOT a tax...it's a fee the financial company charges to provide administration of your IRA account. That fee would go toward the salaries of its employees, and overhead associated with sending out IRA statements, and other adminstration.

46 posted on 06/02/2011 12:25:52 PM PDT by Lou L (The Senate without a fillibuster is just a 100-member version of the House.)
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To: Qbert
The government should make it illegal for companies to just decide to pull up stakes and move.

end sarcasm.

47 posted on 06/02/2011 12:28:27 PM PDT by GSWarrior
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To: Lou L
I think collecting sales tax is a slightly different argument than the one the unions are using at Boeing

I would agree. Final assembly of a major big ticket item such as an aircraft is more of an undertaking than filling and shipping boxes around the country/world.And yes, Tennessee did withdraw its last minute precondition and the deal is being done.

48 posted on 06/02/2011 12:49:28 PM PDT by Tonytitan
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