Items tagged with Sales Tax
Let's face it, one of the reasons why online shopping is so popular is because some web retailers do not collect sales tax. Technically consumers are supposed to report and pay what's called a "use tax" in those situations, but we suspect few people actually do. State governments typically focus their efforts on collecting tax from retailers anyway, and because of those efforts, Amazon is going to charge a sales tax in all states that collect a sales tax starting April 1. This was an inevitable outcome for Amazon, which already charges sales tax in most parts of the country. It was not always that way. For the most part, online retailers have been able to avoid charging a sales tax in states...
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Amazon's long battle against any law that would require it to pay sales taxes may finally be coming to an end. For years, Amazon has benefited from tax exemptions banning the collection of sales tax from online vendors, while competing against the brick-and-mortar establishments in the various states, which are legally required to pay such taxes. When states attempted to pass laws targeting Amazon affiliates as taxable entities, Amazon responded by dumping affiliates in that state. In better economic times, Amazon fought back by filing numerous legal challenges to state sales tax laws, lobbied politicians, and laid astroturf on behalf of consumers who were 'outraged' at the idea that the company...
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Amazon.com is using California's initiative process to try to get a law requiring Amazon.com to collect sales tax in the state repealed, and as part of its process, the company is campaigning in front of physical storefronts. As part of its attempt to repeal the law, Amazon must gather over 500,000 signatures in order for a Proposition to be put on the ballot. In what must be seen as a truly ironic move, (and probably frustrating and annoying for brick-and-mortar stores that must collect sales tax), signature gatherers are using planting themselves in front of high-traffic retail areas. Naturally, quite a few of these retailers have lost sales to Amazon. Bill Whalen,...
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California voters prepare: Amazon.com Inc. has announced that the California Attorney General's Office has approved its petition for a referendum that will let voters decide whether or not to overturn a new law that forces online retailers to collect sales taxes in the state. There has been a large amount of criticism pointed towards Amazon as of late for simply abandoning their affiliates and branches located in California in the face of this law. The law forces online retailers, like Amazon, to collect California sales taxes by expanding what it means to have a physical presence in the state. This includes cases where an online retailer has a related company, such as a marketing arm or...
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Faster than an Amazon Associate could blink, Amazon.com sent out notices on Wednesday, telling Associates that due to California's new budget, which includes a new sales tax on Amazon.com purchases, their accounts would be terminated, IF the sales tax was signed into law (which it has). The state of California is following the example of many other states, passing an "Amazon Tax." In 1992, the Supreme Court ruled in Quill vs. North Dakota that unless a retailer had a "physical presence" in a state, it could no be required to collect sales tax on purchases made in that state. Amazon.com does not have a warehouse or any other physical location, but what Californian and other states have done is...
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The days of sales tax-free purchases on the Internet edged closer to an end on Monday, as a New York court dismissed the lawsuits which had been filed by Overstock.com and Amazon.com over the so-called "Amazon Tax." New York enacted this tax on Internet retailers that have affiliates based in the state. Previously, only retailers with a "physical presence" in the state were required to collect sales tax. New York changed its law to say that having an affiliate (meaning, a site like this one that has Amazon.com ads and gets revenue from click-thrus) constitutes a physical presence. Overstock.com eliminated any New York affiliates, but still filed suit. Amazon's argument was three-fold: The statute...
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You'll probably remember the portent of things to come: New York State's new sales tax on Internet retailers, which went into effect in June. Both Amazon.com and Overstock.com have sued over the tax, in fact, which was written so as to apply "physical presence" to retailers who had affiliates (generally, web sites advertising for the retailer) based in New York. Formerly, only retailers which an actual brick-and-mortar presence in a state were required to collect sales tax. New York legislators went so far as to nickname the new tax the "Amazon tax." The announcement was made to Newegg customers residing in New York in an email on Friday. The email said:Dear Valued Newegg Customer, As a result...
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Right? We all pay it if we live in California or other states which, when residents order from online retailers, aren't charged the normal exhorbitant sales tax (8% or more, depending on county, in California). Sure we do.One advantage of online shopping is that many Web sites don't charge sales tax in California, making what you buy that much cheaper.But state officials want to remind shoppers that they still owe taxes on their purchases. Just report and pay what you owe when you file your annual tax returns.And of course, since it's the honor system, we all pay it right? Of course we do. Don't worry, California, we figure soon enough there'll be a online sales tax for...
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