Online Sales Tax

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EL PRESIDENTE

EL PRESIDENTE

Username Retired in Honor of Lanny.
Joined
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What is your opinion on this. I'm against it. There is no business being conducted in california when you buy from an entity with no physical presence. Just a straight fucking money grab.

Got this today from Amazon.

For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based marketing affiliates like you - even if those retailers have no physical presence in the state.
We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.
As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California residents will no longer receive advertising fees for sales referred to Amazon.com , Endless.com , MYHABIT.COM or SmallParts.com . Please be assured that all qualifying advertising fees earned on or before the termination date will be processed and paid in full in accordance with the regular payment schedule.
You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here . And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.
To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect their ability to purchase from Amazon.com , Endless.com , MYHABIT.COM or SmallParts.com .
We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
Regards,
The Amazon Associates Team
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amazon is the shit. i buy everything from there.
 
nh has no sales tax, or state income tax

we do have hot foods tax, and like hotels and rental cars and shit though...and TOLLS!
 
Sorry, could have been a whole lot more eloquent about this lol. The current state taxing scheme is essentially based on old style catalog sales and is ridiculously outdated -- it does not make sense in the internet world. Amazon is just doing this because they know it'll hurt their business if they have to start collecting sales tax (with free shipping plus no sales tax, they currently have a big advantage over bricks and mortar.)

Under the current system, citizens should assess themselves a use tax and pay the state the same amount as if they'd made the purchase at a local store (and I'm guessing NO ONE on this board has ever done that.) In the internet world, it would not be that difficult for Amazon to calculate the tax based on the buyer's address. Amazon might bitch about the difficulty of this, but they've cleared far bigger logistical hurdles than that. In the old catalog/pre-information age, this would have been extremely difficult.

At this point, the right answer is probably to have Congress specifically change the laws (rather than have states attempt it on a state by state basis), but that would involve politicians working together toward a sensical solution...
 
This happened in Illinois recently and Amazon had to end their relationship with those affiliates. Some of the affiliates moved out of the state and took a lot of jobs from the state. Same thing will happen with the companies in California. They'll just move to Nevada, Arizona or some other tax-friendly state.

http://blog.seorevolution.com/2011/03/10/amazon-dumps-all-illinois-affiliates/
http://www.thenewamerican.com/index...tax-law-leaves-amazon-affiliates-high-and-dry
http://www.websitemagazine.com/cont...is-Governor-Signs-Internet-Sales-Tax-Law.aspx
 
Porn is still going to be tax free, right?
 
If they can, Amazon also tries to buy their way out of tax problems by agreeing to open facilities in return for exemptions from state taxes. A lot of companies do that (or try to), but it still feels like they're trying shirk their duty.
 
I don't blame California for doing what it's doing... but I'm not sure that it's that smart.

Of course, if every state that has sales tax follows suit, then at some point Amazon will probably have to start collecting sales tax for appropriate individuals.

I order a lot from Amazon, and since I'm in WA I have to pay sales tax. When I order from, say, NewEgg I should be paying income tax back to the state of Washington at the end of the year. I don't think many people do that.

Ed O.
 
I don't mind the sales tax we have here in Texas. I can write it off at the end of the year and get it back anyway
 
do i have to pay tax now on digital content? same shit. kindle books and MP3s and TV episodes?

fuck that.
 
states that have sales tax, tax "sales" of things...if you are buying something, you should be taxed for it
 
mobes23 said:
Pretty sure the answer is yes -- tangible or intangible, you're purchasing something.
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I am thinking "no". Currently with Itunes, which is apple who has their physical HQs in California, I am not charged sales tax on digital purchases.

HOWEVER, if I were to buy a kindle book, would it change
 
i wonder if itunes would still charge a buck a song or if it would be the 1.08 or whatever...
 
I buy television seasons too. technically any "membership" would then also apply.

netflix, etc.
 
Lol, I did well in tax class back when I took it 11 years ago, but I'm no expert. That said, I'd think Apple might be paying sales tax, but they just build it into the cost on the front end (there used to be a store here in Seattle called "Always No Tax!" and that's what they did.)

Amazon's maneuver today was meant to avoid having to collect tax in their main lines of business (which includes Kindle) in California. Amazon is reducing their contacts in the state so that California won't have jurisdiction over them so that the state could require that Amazon collect sales tax. That's good news for your kindle book purchases, but not so good for a state that's having huge money troubles. Of course, for you to fully comply with the law, you should report those purchases to the state and pay the state of California the tax that you owe (lol like that'll happen.)

Theoretically, the state could come after you for those amounts owed, but the juice wouldn't be worth the squeeze. Way too much work for them to make it worthwhile. That said, I have heard of states tracking big ticket purchases (like art) and going after the purchasers.
 
mobes23 said:
Lol, I did well in tax class back when I took it 11 years ago, but I'm no expert. That said, I'd think Apple might be paying sales tax, but they just build it into the cost on the front end (there used to be a store here in Seattle called "Always No Tax!" and that's what they did.)

Amazon's maneuver today was meant to avoid having to collect tax in their main lines of business (which includes Kindle) in California. Amazon is reducing their contacts in the state so that California won't have jurisdiction over them so that the state could require that Amazon collect sales tax. That's good news for your kindle book purchases, but not so good for a state that's having huge money troubles. Of course, for you to fully comply with the law, you should report those purchases to the state and pay the state of California the tax that you owe (lol like that'll happen.)

Theoretically, the state could come after you for those amounts owed, but the juice wouldn't be worth the squeeze. Way too much work for them to make it worthwhile. That said, I have heard of states tracking big ticket purchases (like art) and going after the purchasers.
Click to expand...

I write off book purchases anyway as educational/learning expenses.
 
All this is, is a state that misspent its money paying bullshit to do stupid crap and found a new money grab to hide their incompetence.
 
Technically, the state was always owed the money, but there was no easy way to track the purchases and collect the money. The internet makes both relatively easy and states are finally eyeing it because they're in such bad shape financially.

Where they could track purchases like this, they have collected. Cars are the prime example. You need license plates from the state and they take that opportunity to slap you with the use tax. That happened to me when my fricken lame Subaru's transmission went out last Christmas while I was in Oregon. Drove it back home to Seattle and the state of Washington had collected the use tax before I even crossed the state line.
 
Looks like Im going to buy shit whenever I'm in oregon! woot.
 
This just shows that California is an INNOVATOR in chasing away business. Affiliate advertising and marketing is a huge business and many of these people will simply move their operations away.
 
I bought two laptops in the past couple of years. One from Dell, I had to pay sales tax because Dell had a presence in California. The other, the company shipped the laptop to New York and then from New York to me and I had to pay no sales tax. I bought that laptop from the company in New York in the first place, but the manufacturer was in California.

The whole thing is ridiculous, though I agree the state is owed its sales tax - or New York is in the case of the 2nd laptop.
 
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