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[AZ] Online purchases now help fill state coffers
Ahwatukee Foothills News ^ | 1.8.2020 | Howard Fischer

Posted on 01/18/2020 8:13:18 PM PST by libh8er

Arizonans are now paying more money to state and local governments for the items they’re buying online.

The Department of Revenue reports it collected an extra $51.5 million in the first two months after a new law went into effect. Of that, $23.4 million is going into the state treasury, with the balance parceled out among cities and counties.

What makes this number so impressive is budget analysts predicted the net gain to the general fund for a full fiscal year would be just $85 million.

And the collections reported so far don’t even represent December Christmas sales.

The new cash is not a new tax on Arizonans – at least not strictly speaking.

What it represents is Arizona’s effort to take advantage of a 2018 U.S. Supreme Court decision which concluded states are free to levy their taxes on all sales made into the state, regardless of the source.

Previously, the law had been that a business had a “nexus’’ to the taxing state, usually in the form of a physical presence.

So, purchases made from, say, a Target store always have been subject to the state’s 5.6 percent tax plus applicable local taxes. Ditto to purchases from given that retailer’s presence.

But an online retailer in New York state who sold and shipped a $300 camera collected neither New York’s sales tax nor the Arizona’s.

All that has now changed.

As of Oct. 1, Arizona began requiring retailers who make at least $200,000 in direct sales into Arizona to begin charging what is technically called the state’s “transaction privilege tax.’’

Put simply, the purchase of a $300 camera online from one of the retailers required to collect the levy would add $16.80 in state taxes. And someone living in a city and county with a combined local rate of 4 percent would find another $12 tacked on.

Ed Greenberg, spokesman for the Department of Revenue, said his agency already has issued about 2,100 of these “remote seller’’ licenses.

More retailers will soon be subject to the levy. Later this year the threshold for having to collect Arizona taxes goes to $150,000, dropping to $100,000 in 2021.

Shoppers who go online or travel elsewhere to buy everything from clothing to furniture and electronics legally have been required since 1955 to compute what they would have paid had they purchased the items in Arizona and then send that amount off to the state every month.

How many Arizonans actually do, however, is another question.

The state last budget year collected slightly more than $326 million in use taxes, a small fraction of the $7.4 billion taken in.

There are no firm figures on how many individuals are complying with the law or, more to the point, are ignoring it.

The new tax on out-of-state retailers is designed to make up for that lack of compliance and narrow the gap between Arizona retailers and their out-of-state competitors.

As it turns out, at least some online purchases made by Arizonans already were being taxed, even before the new law kicked in.

Amazon began collecting state sales taxes in 2012 on its own products and those of Amazon affiliates after reaching an agreement to settle a $53 million assessment made against it by the Department of Revenue.

For years the Seattle-based company argued its online sales were not subject to the levy because, unlike a place like Target, it did not have retail outlets in the state.

What it does have, however, are distribution warehouses where goods from elsewhere are processed and sent out to Arizona customers. And that, revenue officials argued, provides the legal “nexus’’ to the state.

But that agreement did not cover situations where Amazon was simply a platform for other out-of-state retailers. The new law should fill that gap.

TOPICS: News/Current Events
KEYWORDS: arizona; internet; internetsalestax; taxes

1 posted on 01/18/2020 8:13:18 PM PST by libh8er
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To: libh8er

The pigs will keep taxing until the cost and savings make online useless.

2 posted on 01/18/2020 8:37:58 PM PST by shanover (...To disarm the people is the best and most effectual way to enslave them.-S.Adams)
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To: libh8er

Every time I look at that #$&^#@ tax the first thing I wonder is how many more imports am I paying for now!

3 posted on 01/18/2020 8:38:25 PM PST by heshtesh
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To: heshtesh

Ebay prices are up substantially with these damnable taxes, to the point of why buy? Aren’t we lucky to have a Republican governor and legislature?

4 posted on 01/18/2020 8:44:45 PM PST by Luke21
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To: Luke21

I’m in NY. so i’m pre disposed to waste, theft and corruption so it absolutely drives me nuts to know they have a bigger pot to steal from.

5 posted on 01/18/2020 8:49:44 PM PST by heshtesh
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To: libh8er; All
Instead of putting additional burden on citizens for tax revenues, the states need to support PDJT in putting a stop to unconstitutional federal taxes, taxes that Congress cannot justify under its constitutional Article I, Section 8-limited powers.
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.

Note that most federal domestic social spending programs are based on stolen state powers and uniquely associated state revenues imo.

In fact, the congressional record shows that Rep. John Bingham, a constitutional lawmaker, had clarified that the Founding States had left the care of the people uniquely to the states, not the federal government.

”[…] the care of the property, the liberty, and the life of the citizen, under the solemn sanction of an oath imposed by your Federal Constitution, is in the States, and not in the Federal Government [emphases added].” —Rep. John Bingham, Congressional Globe, 1866. (See about middle of 3rd column.)

So why are citizens now being oppressed under the boots of the unconstitutionally big federal government, evidenced by unconstitutional taxes?

Regarding unconstitutional federal domestic taxing and spending, using inappropriate words like “concept” and “implicit,” the excerpt below from Wickard v. Filburn (Wickard) shows what was left of the defense of 10th Amendment (10A)-protected state sovereignty by the last of state sovereignty-respecting majority justices in United States v. Butler, FDR’s state sovereignty-ignoring activist justices later blatantly ignoring the reasonable Butler interpretation of 10A when they scandalously decided Wickard in Congress’s favor imo.

In other words, the ongoing tsunami of unconstitutional federal taxes is arguably based on the scandalous, effective repeal of 10A by FDR’s state sovereignty-ignoring activist justice majority.

And to make putting a stop to unconstitutional federal taxes permanent, the states need to further support PDJT in leading the states to repeal the 16th and ill-conceived 17th Amendments.

Remember in November!

MAGA! Now KAGA! (Keep America Great Always!)

6 posted on 01/18/2020 9:05:37 PM PST by Amendment10
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To: libh8er

And they are pissing it away as fast as it comes in.

7 posted on 01/18/2020 9:45:29 PM PST by headstamp 2 (There's a stairway to heaven, but there's also a highway to hell.)
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To: libh8er
[AZ] Online purchases now help fill state coffers line politicians' pockets.

Fixed it.


8 posted on 01/19/2020 6:22:03 AM PST by ml/nj
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To: heshtesh
I’m in NY. so i’m pre disposed to waste, theft and corruption so it absolutely drives me nuts to know they have a bigger pot to steal from.

I’m in IL. So I’m pre-disposed to waste, theft and corruption so and it absolutely drives me nuts to know they have a bigger pot to steal from.

9 posted on 01/19/2020 6:26:22 AM PST by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: usconservative


10 posted on 01/19/2020 7:12:42 AM PST by heshtesh
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