Amazon, Overstock thumb nose at California tax

San Francisco Chronicle ^ | 7/3/11 | Andrew S. Ross, Chronicle Columnist

[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."

[HANG THE EXPENSE]

When the judge ruled prop 187 unconstitutional that was the last straw.That has been some years ago and the place has gotten worse.Why are you still there? Are not your taxes through the roof?Dont get caught in the sh thole when the ballon goes up.

[HANG THE EXPENSE]

My wife was born and raised there and I moved her back to georgia where I am from.We would go back to visit family and watched the place go to hell over the last 20 years.She says she would never move back.Its a shame because that place was fabulous.Our old neighborhood has sure gone to the dogs.

[HANG THE EXPENSE]

I certainly understand that.I hope you can figure out some way to escape. I have friends in illinois that I tell them to move south like so many of their neighbors.

[Yaelle]

I hate our greedy CA gov’t. If we could only cut pensions to the state unions, and stop donating to illegal aliens, we’d be a great state again.

[Pelham]

Change that to ‘eliminate state employee unions’ and ‘deport illegal aliens’ and I’ll second it.

[Dan Cooper]

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

I think that Amazon Marketplace sellers already collect sales tax for the state that they are in, including California.

What California is contending is that because Amazon had affiliates in California (basically web sites that steer people to Amazon to make a purchase) that Amazon has a physical presence in California and therefore had to collect sales tax on all sales to California residents. Amazon severed all ties with the affiliates in California, removing the state's justification.

[Lancey Howard]

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.

Yup.
And that is of no concern to the scumbag government bureaucrats.

[giotto]

What California is contending is that because Amazon had affiliates in California (basically web sites that steer people to Amazon to make a purchase) that Amazon has a physical presence in California and therefore had to collect sales tax on all sales to California residents.

Thank you. For some reason, probably because it makes no sense whatsoever, I couldn't get a handle on what this law meant. The only people in California making money on the Amazon sales in question are the affiliates. So only affiliates should have to pay tax. How does Amazon's affiliation get transmuted into physical presence in California? The overreaching audacity of this is breathtaking.

[giotto]

I forgot to mention this: You wrote, “I think that Amazon Marketplace sellers already collect sales tax for the state that they are in, including California.” So what’s to stop the lawmakers from making the same claim about Marketplace sellers as affiliates, namely that their physical presence in CA means Amazon should pay tax on all sales to CA residents? Will Marketplace sellers be next on the chopping block?

[Southack]

U.S. Constitution, Article 1, Section 9: No Tax or Duty shall be laid on Articles exported from any State.

Happy July 4th. Next case.

[reaganaut]

It is difficult but we had to take some real losses in order to leave California when we moved to America 2 yrs ago.

And, in the end, it was worth it to see California in the rear view mirror. I can’t even stand to be there when I drive out my snowbird mother in the Fall and pick her up in the Spring.

[Dan Cooper]

That would be an escalation that California would have to assert. I could see Amazon cutting off Marketplace sellers from California too if the state wanted to go that route. Amazon does not want to start collecting sales tax for all California sales, that would set the precedent for all the other sales tax states.

Ultimately I think we are going to see sales tax collected though. Corporations are not known for standing on principal for very long. I don't think it will impact their bottom line other than the cost of implementing the change.

[reaganaut]

Or maybe the smart ones stay to continue a fight and aren’t quitters by leaving.

- - - - - -
Wow, assumptions much? My husband and I fought hard and were politically active in CA since we were in High School. We got tired of having everything overturned by a liberal court, we got tired of 8 hour waits for the ER when we were paying while illegal aliens got free care, we got tired of the crime, the illegals, the voter fraud, the anti-business laws, etc.

We aren’t quitters because we left, we were PUSHED out by the libs who run that state. Over 20 years of fighting (for us longer for our parents), only to have everything we fought for overturned by some judge or the state is a waste of time.

California isn’t the same state it was when we were growing up, and even less so when our parents grew up there.

My life got a whole lot better once I moved from Mexifornia to America.

[reaganaut]

My husband and I were both born and reared in CA. We got the hell out because it isn’t the same state we grew up in.

And we moved to the High Plains, much nicer. No need to speak spanish, no crime (well maybe one break-in every couple of years), no illegals (deported within 24 hours in our state).

Yeah, there is snow, but I would rather deal with snow in a state that likes my guns and my politics, than have nice weather and have a state government that hates me and loves the illegals.

Sometimes you just need to move on and America is a great country. Consider immigrating.

[HANG THE EXPENSE]

Yep.Work hard all your life to watch it taken away by a bunch of parasites.I dont think so.Its insane to keep beating your head against a wall expecting a different outcome.I’m glad you were able to escape.

[Syncro]

If they can force this on Amazon (even though it is un constitutional) then Amazon should refuse to sell anything to anyone living in California.

There are probably millions of people that buy from Amazon in Calif, let them storm the Capitol with torches and pitchforks.

With plenty of hot tar and comfortable soft rainbow feathers.

[rbbeachkid]

Wow. I teach quilting online. My students purchase tools and materials and some of them are purchased through me from Amazon and other retailers.

Maybe you should consider cutting back on the caffiene.

Or find out what you are talking about first.

[Private_Sector_Does_It_Better]

I’m moving to Texas from CA on Sunday. Renting out my CA house, had gobs of peopling apply to rent it; so many people in CA can no longer afford to buy.

[KeyLargo]

the times

Amazon planning 4th Indiana distribution center

By The Associated Press | Posted: Wednesday, July 6, 2011 7:00 am

PLAINFIELD, Ind. | Amazon.com is planning to open a fourth large distribution center in central Indiana.

The Seattle-based company announced Wednesday that its new warehouse in Plainfield would have hundreds of full-time and seasonal jobs, but didn’t give specifics or say when it would open. That follows Amazon’s announcement in May of a new distribution center near Indianapolis International Airport.

The Indianapolis Star and the Indianapolis Business Journal report the warehouse announcements come as the Internet retailer fights other states trying to collect taxes from its online sales. Indiana officials offered four years ago to not push the tax issue in recruiting Amazon to the state.

Amazon now has a distribution center just north of Indianapolis in Whitestown with 1,200 full-time workers and another in Plainfield that opened with 350 employees

http://www.nwitimes.com/news/state-and-regional/indiana/article_74a591cf-963a-579e-99ff-2c24a00e6f9f.html?print=1

[sarasmom]

So are you charging/paying sales taxes for reselling products to students in your own home state?
Or are your students paying taxes for direct purchases?

Nobody is demanding that Amazon ie render sales taxes for Florida sales to California.
Don't want to pay sales tax?
Fine, pay the use tax instead.

Amazon can avoid collecting/paying sales tax from California residents, as long as they have no California based sales “partners”.
Same as in all the other 49 states, for every company, brick and mortar or Internet, large or very, very small.

I think you, along with a whole bunch of FReepers need to realize that supporting and/or participating in black market tax cheating schemes is not a conservative position.

Yes, I am a TEA Party participant.
I can see why there are fewer of us than I initially expected, since so many of my fellow citizens spend more time in tax avoidance, than in working for tax reform.

Maybe you should consider cutting back on the Purple Koolaid.

Just a guess here...you are a Baby Boomber who expects a magic monthly check and/or medical subsidy from the “government” because “you” paid your fair share of taxes all your life, and shouldn't be expected to pay anymore.

Or are you just a capitalist when it is “FREEEEE”