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Amazon cuts deal on California sales taxes
LA Times ^ | September 8, 2011 | Anthony York and Marc Lifsher

Posted on 09/08/2011 8:37:34 AM PDT by kiryandil

Edited on 09/08/2011 9:12:04 AM PDT by Admin Moderator. [history]

Reporting from Sacramento— Amazon.com cut a tentative deal with legislative leaders Wednesday night that would allow it to postpone collecting sales taxes from Californians for another year.


TOPICS: Business/Economy; News/Current Events; US: California
KEYWORDS: amazon; california
Looks like the Democrats were desperate for the cash.
1 posted on 09/08/2011 8:37:39 AM PDT by kiryandil
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To: kiryandil

Amazon crumbles. The need to hear from customers stating if they collect sales taxes, the customers will go elsewhere.


2 posted on 09/08/2011 8:41:52 AM PDT by Truth29
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To: kiryandil

Yikes, what a crew of liberal ghouls at the story link.


3 posted on 09/08/2011 8:43:20 AM PDT by headstamp 2 (Time to move forward not to the center.)
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To: Truth29

Just curious - where is this “elsewhere”, especially for those with Kindles?


4 posted on 09/08/2011 8:44:01 AM PDT by Ingtar (Together we go broke (from a Pookie18 post))
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To: Ingtar
"Just curious - where is this “elsewhere”, especially for those with Kindles?"

Well, if you have a kindle you have tied yourself to Amazon, but there are alternative book readers such as the Nook. For everything else, there is an endless array of outlets. The Amazon Marketplace is a convenience. We can all go directly to most sources without Amazon.

5 posted on 09/08/2011 8:48:27 AM PDT by Truth29
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To: kiryandil

"Reporting from Sacramento—
Amazon.com cut a tentative deal with legislative leaders Wednesday night that would allow it to postpone collecting sales taxes from Californians for another year.

The company in turn would drop its battle to overturn the state's new law that required it and many other out-of-state online retailers to collect the taxes."

LOL - And one year from now Amazon will just go ahead and close its California operations, and/or resume its efforts to overturn the offending law. This "deal" cost Amazon nothing and gives them another year of the status quo.

6 posted on 09/08/2011 8:48:54 AM PDT by SeeSharp
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To: kiryandil

“I’m concerned about anything that would reduce revenues going forward because we’re in a very uncertain economy,” the governor said last week. “We need more revenues unless we’re going to keep curbing schools, courts, corrections.”

I love a good quote.


7 posted on 09/08/2011 8:49:01 AM PDT by wita
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To: kiryandil

“I’m concerned about anything that would reduce revenues going forward because we’re in a very uncertain economy,” the governor said last week. “We need more revenues unless we’re going to keep curbing schools, courts, corrections.”

####

Yes by all means, Moonbeam “curb” away. Curb at full speed and curb at will.

Oh, and START with those obscenely fat, taxpayer-funded, government worker pensions. ALL of them.


8 posted on 09/08/2011 8:50:19 AM PDT by EyeGuy (2012: When the Levee Breaks)
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To: kiryandil; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; calcowgirl; Gilbo_3; ...
RE :"Reporting from Sacramento— Amazon.com cut a tentative deal with legislative leaders Wednesday night that would allow it to postpone collecting sales taxes from Californians for another year. The company in turn would drop its battle to overturn the state's new law that required it and many other out-of-state online retailers to collect the taxes. Under the deal, Amazon would delay collecting taxes until September 2012, Assemblyman Charles Calderon (D-Whittier) said. The new law had mandated that Internet retailers start collecting state taxes in July if they had offices, workers or other connections in California. Amazon had refused to collect the taxes and poured $5 million into collecting signatures for a ballot referendum challenging the law."

This is really bad news because it shows that any state now can force a out of state company to collect state sales taxes for it, without a change in Federal law. Maryland is following CA because it just jacked up it's sales tax by 50%.

The CA law referenced:
California tells online retailers to start collecting sales taxes from customers

9 posted on 09/08/2011 8:50:52 AM PDT by sickoflibs (Over-taxed means 'paying too much in taxes', not zero taxes)
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To: Truth29
Well, if you have a kindle you have tied yourself to Amazon

That's not true. All you need is the shareware eCalibre. It's an eBook manager & can also convert from epub to mobi (Kindle's format) to pdf , etc. etc.

I use it all the time. Works great.

http://calibre-ebook.com/

10 posted on 09/08/2011 8:57:26 AM PDT by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it)
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To: Ingtar

—Just curious - where is this “elsewhere”, especially for those with Kindles?—

Public libraries, for starters.

We have a Kindle. We’ve never paid for anything and read a LOT. If I had to throw it away I’d survive. We’ve already got our money’s worth out of it.


11 posted on 09/08/2011 9:00:46 AM PDT by cuban leaf
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To: SeeSharp

—LOL - And one year from now Amazon will just go ahead and close its California operations, and/or resume its efforts to overturn the offending law. This “deal” cost Amazon nothing and gives them another year of the status quo.—

That is certainly the way I read it. There may be details left out, but who knows. The politicians just may be that stupid.


12 posted on 09/08/2011 9:02:13 AM PDT by cuban leaf
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To: Puppage
Thanks, but you would still have to pay for the kindle downloads, right? If course, with a general Ereader or software, you have the freedom to go to a lot of other sources.
13 posted on 09/08/2011 9:04:30 AM PDT by Truth29
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To: kiryandil

A year’s delay in collecting the taxes will allow time for a referendum on the issue, I would think. Then if that fails to pass, Amazon can still pull out.

I presume they would prefer not to pull out. It would hurt California most, but it would also hurt Amazon, losing all those clients and sources.

Presumably this ties in with the failure of the emergency bill to pass, mentioned just above, which would have bypassed the referendum procedure.

So, I wouldn’t write Amazon off quite yet.


14 posted on 09/08/2011 9:08:05 AM PDT by Cicero (Marcus Tullius.)
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To: Truth29
If course, with a general Ereader or software, you have the freedom to go to a lot of other sources.

Which is just what the eCalibre will allow you to do with your Kindle. When you say If course, with a general Ereader or software, you have the freedom to go to a lot of other sources, you're still paying for the books, yes?

15 posted on 09/08/2011 9:13:53 AM PDT by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it)
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To: Ingtar
Just curious - where is this “elsewhere”, especially for those with Kindles?

Look up the program 'Calibre'. This allows you to convert books from many different formats (epub, lit, html, txt, pdf, etc) to mobi and load them into the Kindle.
16 posted on 09/08/2011 10:33:24 AM PDT by fifedom
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To: sickoflibs
new law had mandated that Internet retailers start collecting state taxes in July if they had offices, workers or other connections in California.

move out, or add the additional tax separately at 'checkout', giving full credit to the socialists, by name, that voted for it...

17 posted on 09/08/2011 10:46:23 AM PDT by Gilbo_3 (Gov is not reason; not eloquent; its force.Like fire,a dangerous servant & master. George Washington)
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To: fifedom

Thank you. I shall check it out.


18 posted on 09/08/2011 11:04:57 AM PDT by Ingtar (Together we go broke (from a Pookie18 post))
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To: Gilbo_3
Another article at latimes says this:

Beyond direct Internet transactions, Amazon boosts its California sales by relying on a network of local website operators who earn commissions as affiliates by directing some of their traffic to the Seattle company. That network, critics claim, creates a basis to require Amazon to collect sales tax from all its California customers. Skinner's bill could put some of those small websites out of business, said Rebecca Madigan, a spokeswoman for 25,000 Amazon affiliates in California. "Out-of-state retailers will simply stop advertising on the California websites to avoid having to collect California sales tax," she said. "So, at the end of the day, California website advertising income is cut off, and the state doesn't collect sales tax revenue."

19 posted on 09/08/2011 11:06:35 AM PDT by sickoflibs (Over-taxed means 'paying too much in taxes', not zero taxes)
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To: kiryandil
Looks like the Democrats were desperate for the cash.

From the article

He (Dem Calderon) credited Senate Minority Leader Bob Dutton (R-Rancho Cucamonga) with starting the talks that led to the deal.

Looks like we got screwed by the Pubbies too.
20 posted on 09/08/2011 11:44:27 AM PDT by fifedom
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To: Truth29

Nook is Barnes and Noble. They already have to collect sales tax in most states, because they have stores in the states.

I prefer having a company collect the sales tax for me, than having to track my purchases so I can file a use tax payment for them.

Every state that has a sales tax also has a use tax for anything you buy that didn’t get the sales tax collected. So you don’t get out of paying taxes simply because the company doesn’t collect them. Unless, of course, you cheat on your taxes, in which case you can “get out” of any tax.

If you really wanted to cheat on sales tax though, the way to do it is to forge a charitable organization identification. Charities can buy things without sales tax, so if you buy a good forgery of a charity letter, you can present that at any store in your state, and they won’t collect the sales tax.

I’m surprised more of the people who don’t pay their use taxes haven’t thought of this. It’s a lot easier than robbing banks.


21 posted on 09/08/2011 12:56:27 PM PDT by CharlesWayneCT
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To: kiryandil

Now we’ll see if Amazon reinstates the affiliate program in California.

If not , then Brown won.


22 posted on 09/08/2011 1:32:47 PM PDT by NoLibZone (Democrats are violent. Prisons are overflowing with democrats convicted of violent crimes.)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks sickoflibs.


23 posted on 09/09/2011 3:47:14 AM PDT by SunkenCiv (It's never a bad time to FReep this link -- https://secure.freerepublic.com/donate/)
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To: sickoflibs

Uh oh. Wussies.


24 posted on 09/09/2011 4:54:21 PM PDT by Impy (Don't call me red.)
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