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Amazon Supports a Bill Forcing Online Shoppers to Pay Sales Tax
Time ^

Posted on 11/12/2011 7:39:16 AM PST by Perdogg

The days of skirting around having to pay retail sales tax by shopping online may be coming to a close—and Amazon, of all companies, is supporting the effort.

Online retailer Amazon.com has a long history of fighting requirements for shoppers to pay their local state sales tax whenever a purchase is made via the Internet. Most recently, Amazon has been battling it out with California, which has been trying to force Amazon and other online retailers with ties to the state to collect sales tax on purchases.

(Excerpt) Read more at moneyland.time.com ...


TOPICS: Breaking News; Business/Economy; Government; Miscellaneous; US: California
KEYWORDS: amazon; california; salestax; tax
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To: Balding_Eagle
Very true. But the issue from a local point of view is that the states are loosing the sales tax revenue to online retailers. Now for a store like Cablea’s, they will charge sales tax if there is a store located in that state. Don't know the situation for warehouses like Amazon.

The end game is that the states and cities are deep in the red, and they will tax anything. Illinois is threatening to fine people who live in state but gas up over the borders. Other cities have tried to levy a wheel tax on people who work in town, but live out of town.

101 posted on 11/13/2011 10:07:04 AM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: TomGuy

And they will start auditing individuals for previous purchases, since they were required to pay Use Taxes on those purchases.


102 posted on 11/13/2011 10:10:07 AM PST by dfwgator (I stand with Herman Cain.)
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To: redgolum

I think it is law in all sates (not positive but quite sure) that if an online seller has a brick and mortar presence in that state they are required to collect sales tax for any sales made to customers in said state.

Eventually, all online sales will be taxed, we just need to push the date back as far as we can.


103 posted on 11/13/2011 10:11:57 AM PST by Balding_Eagle (Overproduction, one of the top five worries of the American Farmer each and every year..)
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To: devolve

I’ve never bought from Amazon and seldom buy anything online. I can recall, years ago, when my daughter bought all her Christmas gifts online with no sales tax nor shipping costs either! All good things end, lol.


104 posted on 11/13/2011 10:16:00 AM PST by potlatch (*snip*~ “Having the right to be angry doesn’t give one the right to be cruel. ~*snip*)
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To: Perdogg

Amazon’s bill won’t work. - Congress lacks constitutional authority to force the payment of a state tax on interstate commerce.


105 posted on 11/13/2011 10:19:44 AM PST by editor-surveyor (No Federal Sales Tax - No Way!)
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To: potlatch

- Amazon PRIME now includes Netflix streaming of thousands of movies plus classic TV

- But it’s a ‘No-Go’ for my vintage WebTV PLUS

- I believe I missed the 10/31 deadline for the Optimum ‘IO Silver’ package - it was only $9.95/mo. with $25 back from Starz and another $25 from Showtime - 40 more movie channels - more than 1000 movies a month plus more NFL channels

I’ll have to see if I can Time-Travel back to October and still squeeze in - but perhaps ‘wait until after the Holidays’ to get it


106 posted on 11/13/2011 10:57:55 AM PST by devolve (- - - - - - - - - - - - Nouveau Barack Pansies of Obamaville - - - - - - - - - - - -)
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To: devolve

Well, I hope you can do the ‘time travel’ thing and manage to get a good movie package devolve. I know how you enjoy watching movies - like I enjoy my mystery story books, lol.


107 posted on 11/13/2011 11:12:48 AM PST by potlatch (*snip*~ “Having the right to be angry doesn’t give one the right to be cruel. ~*snip*)
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To: potlatch


Optimum Cable has had spots on Cable plus they included info flyers in my mailed cable bills

I just did not pay attention - Oops as somebody said - It must have been interference from the White Hut -

108 posted on 11/13/2011 11:24:19 AM PST by devolve (- - - - - - - - - - - - Nouveau Barack Pansies of Obamaville - - - - - - - - - - - -)
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To: Rodm

>>Kiss Amazon good bye! They’ll be Chapter 11 by next year.

Why? Even with sales tax added on, Amazon is still cheaper than Wal-Mart—which Wal-Mart also charges me. And Wal-Mart is cheaper than everyone else. I pay for Amazon Prime every year and get my money’s worth of free 2-day shipping.


109 posted on 11/13/2011 11:42:23 AM PST by Bryanw92 (The solution to fix Congress: Nuke em from orbit. It's the only way to be sure!)
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To: devolve

May have been a mistaken “nein-nein-nein” moment, lol


110 posted on 11/13/2011 11:49:41 AM PST by potlatch (*snip*~ “Having the right to be angry doesn’t give one the right to be cruel. ~*snip*)
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To: wally_bert

That’s a good way to go with the church parishioners. There’s a few guys who buy “not-working” laptops in L.A. and they fix them. I also sold one on Craigslist to this fix-it shop (legit) for $150 a few months back..for an ME machine and a screwed HP DV 6100 series that was the basis of the massive recall.

For tax purposes he made sign a paper with name, phone: just gave a bogus name and number, signature and got the money. Wore a baseball cap and fake eyeglasses in case the camera records it...can’t do that in pawn shops anymore.


111 posted on 11/13/2011 11:51:34 AM PST by max americana (CAIN 2012)
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To: redgolum

>Illinois is threatening to fine people who live in state but gas up over the borders.<

And how the hell is the state supposed to find out especially if you pay cash. Reminds me of when I was in canada and every canadian drives to the US border cities to gas up due to the high taxes in filling up and those scumbag border guards have to ask me what I did in the US and told them I bought eggs and milk..


112 posted on 11/13/2011 12:02:46 PM PST by max americana (CAIN 2012)
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To: Perdogg

The problem is that the bill requires the retailer to file a sales tax return in *every* state where a product is shipped. In all 50 states.

The paperwork will kill small retailers. Let’s suppose Bob and Judy run a small e-mail catalog operation. They make $500,000 in sales. Sounds like a lot, right? Cost of Goods Sales plus expenses typically leave the retailer with a 10% profit margin ($50,000). Just enough for Bob and Judy to live on.

With the new law Bob and Judy will have to file 50 state income or sales tax returns each year. There are 1000+ sales tax juristications that vary by county and by city. The California sales tax return and instructions (BOE-401-A) alone is a dozen pages long. Many states require quarterly filings.

Amazon loves the bill because it will run their small competition out of business.


113 posted on 11/13/2011 1:50:35 PM PST by Gideon7
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To: max americana

The one hitch is that I do a good job and solve their problems so I am not needed as much but I get a referral once in a while.

My wife has a few contacts in small business land out here and every now and then one of those comes around. Usually advise and consult on what to get next.

These days I am working on a contract job for an outfit that shall remain nameless for a few weeks where I drive the supply van and help installer crews change stuff out for a bunch of BOA branches.

I finally got around to doing some long overdue website revamping (such as it is) and relaunched advertising myself on Craigslist.


114 posted on 11/13/2011 2:24:11 PM PST by wally_bert (It's sheer elegance in its simplicity! - The Middleman)
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To: max americana

ID check for drivers filling up in say, Iowa, with IL plates.

Which is why it hasn’t worked yet. Iowa says “no thanks”, but Illinois keeps making noise about it.


115 posted on 11/13/2011 2:34:59 PM PST by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: ladyvet
Same here. Gotta watch every dollar and for us Amazon has been the cheapest way to shop. If sales tax is the future,well...buh bye Amazon.

We shop Amazon a lot because locally the stores just don't carry what we want. I got tired of the stored dictating the products I must buy because they carry a small selection. With online shopping I don't have to settle for less than what I want anymore.

I like the free shipping and if I keep doing the free shipping then I would be okay with the tax. I'd rather pay the tax and get the product I want, than purchase locally and not get what I want but still have to pay that tax anyway.

116 posted on 11/13/2011 2:45:10 PM PST by Netizen (Path to citizenship = Scamnesty. If you give it away, more will come. Who's pilfering your wallet?)
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To: redgolum

Maybe I misread the post but are you saying that Iowa gas stations will or are supposed to report your IL car when they get gas?


117 posted on 11/13/2011 2:50:09 PM PST by max americana (CAIN 2012)
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To: napscoordinator

No comment.


118 posted on 11/13/2011 2:55:31 PM PST by Postman (Cut, Cap and BBA)
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To: Balding_Eagle

So we should keep buggy whip makers in business?

Efficiency in business operations brings lower costs. Those dollars saved can be spent supporting other businesses.

I try to buy local. Often what is offered for sale locally is overpriced, no better quality than what I could get from Amazon. Plus I have to get to the store before they close up shop for the evening.


119 posted on 11/13/2011 3:58:32 PM PST by listenhillary (Look your representatives in the eye and ask if they intend to pay off the debt. They will look away)
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To: Perdogg

Apparently Amazon is supporting this to put smaller on-line retailers out of business, as if they don’t already have a gazillion bucks.

However, being a free enterprise proponent, Amazon can support whatever it wants to make itself bigger. There are countless Web retailers that will sell you the same thing. Unless Congress makes this happen and includes all e-retailers, screw Amazon will lose some business to us e-buyers.


120 posted on 11/13/2011 3:59:40 PM PST by A Navy Vet (An Oath is Forever.)
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