Posted on 06/12/2011 3:31:33 AM PDT by LibWhacker
NEW YORK (TheStreet) -- Amazon(AMZN) is in the midst of a heated battle with states over whether it should be required to collect sales taxes.
While this has been an ongoing debate, the dispute recently escalated as states look to recover deficits coming out of the recession. One way to do this would be through sales taxes.
In the past, Amazon has been protected by a 1992 Supreme Court ruling (Quill Corporation v. North Dakota) that prohibits a state from forcing a business to collect sales tax unless it has physical stores in the state.
While tax payers in most states are required to pay the tax directly to the government, few actually do.
But now several states are seeking to get around these restrictions by passing laws that expand the definition of physical presence.
The target has been on those e-commerce sites that work with affiliates. Affiliates are partner sites that earn commissions by advertising or linking to an online retailer's merchandise.
In response, Amazon has threatened, and in some cases, ended partnerships with affiliates in states looking to revise these rules.
Amazon reiterated its commitment to cutting ties with affiliates in states that decide to collect sales taxes, during the ShopSmart Shopping Summit held in New York in May.
"We will continue to drop states who pass those affiliate laws, from the affiliate program," CEO Jeff Bezos said at the conference, which was streamed over the Internet.
"In the U.S., the Constitution prohibits states from interfering in interstate commerce, and there was a Supreme Court case decades ago that clarified that mail-order companies, because the Internet didn't exist then, would not be required to collect sales tax in states where they didn't have what's called a nexus," he continued.
Bezos argues that the place to fix the issue is in federal legistlation.
Currently, Amazon collects sales tax in five states -- Kansas, Kentucky, New York, North Dakota and Washington -- the only markets where it has stores or offices. But if other local governments have their way, this could soon change.
Here's a state-by- state look at how Amazon is handling the sales tax debacle...
(Excerpt) Read more at thestreet.com ...
stop being greedy amazon, pay your taxes, you support higher taxes after all, being a democrat run company
I guess lowering their competition’s taxes to match would be “unfair” /s
Perhaps Amazon is not your favorite company - fine. But if the States win this it will be a disaster for everyone the sells goods over the internet. If you think CA or IL will stop with Amazon your wrong. I do internet sales from NH (a no sales tax state). If I send stuff to CA, the CA tax man will come after me, and I will have no way of defending myself in a CA courtroom. Besides, NH doesn't have a sales tax, so where is the sale being made and who's laws apply (NH, or CA).
In addition the Constitution says:
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States;
James Madison, in his notes on the Constitution Convention, mentions that one of the main reasons for the convention was to prevent this exact situation. John Marshall, in one of the first cases to address this, specifically states that this clause prohibits states from collecting sales taxes on items imported from other states. It wasn't until the civil war era when Marshall was overturned. Just another example of the Supremes shredding the Constitution.
Justice Thomas, in a 1994 case recommended that the civil war era case be revisited because of the problems that it has created with the interstate commerce clause and when states are allowed to regulate and when they are not.
While this has been an ongoing debate, the dispute recently escalated as states look to recover deficits coming out of the recession. One way to do this would be through sales taxes
It's not amazon, it is the individual buyer that pays {or does not pay} the taxes.
Amazon does not collect them because they don't have to and it makes it appear to be less expensive {but illegal} for the individual buyer to escape paying the sales tax.
When most people buy on-line, if the company does not collect the sales tax, few folks will voluntarily send a check to their state for the tax that is due.
stop being greedy amazon, pay your taxes, you support higher taxes after all, being a democrat run company
Gotta think big brick and mortar stores like Macy’s are behind this too. Amazon with lower prices and better selection kills them. If people had to pay taxes and it pretty much evened out the cost, people might start shopping in malls more again. I haven’t been to a shopping mall in years. Have probably spent $10,000 in the last few years on items like clothes and shoes and such I would have went to the mall for.
They keep running the stupidist commercial (during Rush!) here in PA – Some dire voice tries to get people to call their congress-creature and complain about Amazon not paying “their fair share” (where, of course, if they collected sales taxes all that would happen is WE would be paying more and our useless government would rake in MORE of our money for doing absolutely nothing except demanding it). Their justification for this, laughably, is that Amazon “getting away” with this is hurting local business, who consequently aren’t paying LOCAL taxes from sales, and consequently it’s hurting... you got it, OUR CHILDREN because schools just aren’t getting enough money.
Boy, the BS meter sure went red on THAT one.
So... what’s next... if Amazon sells a DVD for $9.99 that Joe and Mary’s CD emporium charges $18.99 for, is that “unfair”, too?
Really. These !@(*#’s won’t stop until we’re a communist country AND our economy is completely destroyed... all in the name of “fairness.”
I am sure that "4rcane" was being sarcastic....
Or, maybe not. I didn't read his full quote...
Never
If the Brick and Mortars are able to bribe the legisltors, all it will do is accelerate my drift to online shopping. I have not been to a mall for years, mostly because of the feral kids. The 1911 A1 gets heavy. Besides, time is money. I have better things to do on a saturday morning than enjoy the body peircings of cashiers with attitudes who will not even look for the merchandise.
So if they tax sales from online sources, it's a wash. you pay taxes at the brick and mortars, anyway. With Amazon prime for $70 a year or so, shipping is free. The Brown Truck shows up with the stuff faster than Saturday Morning rolls around.
All their lobbying would do is to give me a final grudge against the B&M stores, and consciously do what I have been drifting toward anyway.
The two exceptions for me are building supplies and groceries. Online grocery shopping is how the stores get rid of the wilted vegetables and carrion.
A friend of mine was a regional manager for Wal-Mart and told me that they actually kept pictures of their competition on a bulletin board and crossed them out as they drove them out of business. Then they would increase prices. They work just like drug pushers, and when you are hooked, they close the local store to make you travel further to go to a regional superstore!
The biggest problem in the last 20 years is lack of enforcement of antitrust legislation that is already on the books.
Amazon, like Walmart and Sam's Club, sold the books to the public cheaper than the publishers would sell them to us. I have heard horror stories from publishers who were put out of business by Amazon & Wal-Mart. They would place huge book orders and get 90 day dating on the invoice, with full credit on returns. As the 90 grace period was expiring, they would place a second order as though they were replenishing stock, (this too with 90 day dating). And then return most of the first order for credit against the first invoice so they didn't have to pay it. This really screwed up the publishing industry and put many of them out of business.
Amazon screwed investors when they started by capitalizing marketing expenses as they gained market share by selling their books at or below their cost. Thus they showed phony profits to make their stock go up.
While they continue to spend, spend, spend.
I was going sarcastic :) so what made you changed your initial correct assumption after reading full quote
Actually I have had dealings with Vons.com here in San Diego and they have special shoppers just for it. Have gotten great produce and many times your meat order is cut and packaged just for your order, especially the morning deliveries, and have gotten great meat.
I apologize in advance if this is a stupid question: what is to stop the individual states from getting a court order to view customer information - then sending tax bills to the customers in their state? Complete with added fines, for not paying when you were supposed to?
Typical 'Rat behavior: any successful sector of the economy must be choked and throttled to bring it in line with the rest of their disasters.
So when can i get all four books on Kindle?
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