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Amazon, Overstock thumb nose at California tax
San Francisco Chronicle ^ | 7/3/11 | Andrew S. Ross, Chronicle Columnist

Posted on 07/03/2011 3:35:55 PM PDT by SmithL

So, I went online Friday looking to buy a copy of John Kenneth Galbraith's "The Affluent Society & Other Writings, 1952-1967." Thought it might be timely to revisit the Harvard economist's distinction between "private affluence" and "public squalor."

Barnes & Noble's website was selling it for $26.53. Total, which included California sales tax: $28.79. "Total Before Tax" at Amazon.com: $26.40. "Estimated Tax To Be Collected: $0.00."

At Overstock.com, I could still buy furniture and various knickknacks free of the 7.25 percent tax, even though California's law mandating out-of-state Internet retailers to start collecting the taxes was now in effect.

In other words, screw you, California, and your laws.

"They're not intending to comply, by all indications," said Betty Yee, former chairwoman and current member of the state Board of Equalization, the agency charged with implementing the law. Friday evening, the board posted a "special notice clarifying the obligations of out-of-state retailers" on its website (sfg.ly/mh6SxF).

"So, we'll bill them at the end of this quarter, based on estimates either they provide or we come up from other data sources. Then, if they don't come forward and pay, we'll consider other courses of action."

That most likely means litigation, or, as Amazon and Overstock might see it, a game of "catch us if you can."

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


TOPICS: Business/Economy; Extended News; Government; US: California
KEYWORDS: amazon; california; goldenstate; overstock; taxandspend
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To: Tanniker Smith

BTW, Nissan NA pulled out and now reside SW of Nashville.


21 posted on 07/03/2011 5:01:16 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: ShadowAce; Ernest_at_the_Beach; Swordmaker; AdmSmith; AnonymousConservative; Berosus; ...

Thanks SmithL.


22 posted on 07/03/2011 5:13:57 PM PDT by SunkenCiv (It's the Obamacare, stupid! -- Thanks Cincinna for this link -- http://www.friendsofitamar.org)
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To: HANG THE EXPENSE

Gee, thanks alot! Move where? I was born here, lived here all my life. Should I move to tornado alley, or hurricane zone, or a flood plain, or snow country, or the now polluted gulf area?


23 posted on 07/03/2011 5:24:31 PM PDT by Clovis_Skeptic (The answer to 1984 is 1776!)
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To: bert

I spoke with a used book store retailer yesterday. He said “Associates” are third parties not the second party used book re-sellers. It is those who have websites that serve as marketing conduits to the Amazon.com website that were shut down. So you are right - by getting rid of the third parties Amazon.com has no more presence in California and thus no more tax obligation.


24 posted on 07/03/2011 5:28:04 PM PDT by WayneLusvardi (It's more complex than it might seem)
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To: bert

I spoke with a used book store retailer yesterday. He said “Associates” are third parties not the second party used book re-sellers. It is those who have websites that serve as marketing conduits to the Amazon.com website that were shut down. So you are right - by getting rid of the third parties Amazon.com has no more presence in California and thus no more tax obligation.


25 posted on 07/03/2011 5:28:13 PM PDT by WayneLusvardi (It's more complex than it might seem)
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To: bert

I spoke with a used book store retailer yesterday. He said “Associates” are third parties not the second party used book re-sellers. It is those who have websites that serve as marketing conduits to the Amazon.com website that were shut down. So you are right - by getting rid of the third parties Amazon.com has no more presence in California and thus no more tax obligation.


26 posted on 07/03/2011 5:28:19 PM PDT by WayneLusvardi (It's more complex than it might seem)
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To: mrreaganaut

ping


27 posted on 07/03/2011 5:35:52 PM PDT by reaganaut (Ex-Mormon, now Christian - "I once was lost, but now am found; was blind but now I see")
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To: giotto

.....by way of a link from a California-based affiliate’s website ...

I don’t know about that. I think an affiliate bookshop for instance that sells a book via the Amazon site listing would trigger the California presence even if they had no website of their own.

I recently bought a used volume from a California seller listed as one of several sellers on the Amazon site. That seller is now not an Amazon affiliate by my understanding of the situation.


28 posted on 07/03/2011 5:49:15 PM PDT by bert (K.E. N.P. N.C. D.E. +12 ....( History is a process, not an event ))
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To: bert

Are you saying that an Amazon Marketplace seller located in California can no longer sell through Amazon? That’s not surprising, given the nature of the California law, but it is really unfortunate. There are many people who make their living selling books as Amazon Marketplace sellers. There are books that can be found only from Marketplace sellers. All of this commerce is being destroyed by our increasingly tyrannical government.


29 posted on 07/03/2011 5:59:07 PM PDT by giotto
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To: giotto

——Are you saying that an Amazon Marketplace seller located in California can no longer sell through Amazon?-——

That is my understanding.


30 posted on 07/03/2011 6:02:42 PM PDT by bert (K.E. N.P. N.C. D.E. +12 ....( History is a process, not an event ))
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To: HANG THE EXPENSE
Some of us would like to leave the state but
declining real estate values and a poor job market keeps many people here. Walking away from your house is almost unthinkable. I can sympathize with the 1960 residents of Detroit. I hope the house market improves, it would be nice to see California in the rear view mirror.
31 posted on 07/03/2011 6:07:15 PM PDT by pterional
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To: SmithL

It was always meant to come down to a court fight. CA wants to make new law by saying that a retail company DOES have a physical presence in the state, even if that presence is a few guys in an office programming. They then want to use that presence in order to extend to the company the obligation to pay sales tax.


32 posted on 07/03/2011 6:13:23 PM PDT by VeniVidiVici ("Si, se gimme!")
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To: giotto

Yeah, when sale tax receipt totals collected are less than before the new law then it will be back to the drawing board to come up with another draconian tax plan. Liberals are just as happy as can be watching the exodus from California.


33 posted on 07/03/2011 6:19:03 PM PDT by Razzz42
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To: giotto

I just received 4 emails from various companies explaining to me that I would no longer qualify as an affiliate (Amazon was one of them) because I live in California. They said they would be happy to resume our relationships when I did not have my business in California. My answer is to incorporate in Nevada and open a PO Box virtual office there. Screw these idiots. My business will probably never pay me anything while I live here either.


34 posted on 07/03/2011 7:04:21 PM PDT by rbbeachkid (Get out of its way and small business can fix the economy.)
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To: Tanniker Smith
I'm just waiting for someone to tell Amazon that they can't pull out of California and do business in Tennessee (or elsewhere, for that matter).

Cue Governor Christie

35 posted on 07/03/2011 7:07:11 PM PDT by Qout
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To: KarlInOhio

I’ve read there’s a case regarding the Current mail order company and its subsidiaries which backs Amazon’s position.


36 posted on 07/03/2011 7:09:29 PM PDT by GOPrincess
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To: KarlInOhio

I’ve read there’s a case regarding the Current mail order company and its subsidiaries which backs Amazon’s position.


37 posted on 07/03/2011 7:09:41 PM PDT by GOPrincess
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To: SmithL

Don’t put it past the State Board of Equalization to come after residents for use taxes.


38 posted on 07/03/2011 7:35:19 PM PDT by Mike Darancette (Pelosi: Obamacare indulgences for sale.)
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To: rbbeachkid
What business do you have?
What do you do that makes you a value added retailer?

You sound like the typical tax scamming black market internet drone.
Do you really operate a business, or do you just try to scam extra money by operating a third tier Internet sales layer?

Let me guess, you spend a lot of time clicking through various internet websites, so those sites can charge paid advertisers more money, for all those clicks. Right?

And you call that a business?

39 posted on 07/03/2011 8:38:40 PM PDT by sarasmom (God is great, beer is good, and people are crazy....)
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To: HANG THE EXPENSE

Or maybe the smart ones stay to continue a fight and aren’t quitters by leaving. Our fore fathers stayed and looked how that worked out.


40 posted on 07/03/2011 8:54:15 PM PDT by repubpub ("History, in general, only informs us of what bad government is." Thomas Jefferson)
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