Amazon to Collect California Sales Tax by 2013

[alp227]

Source: The Wall Street Journal

NEW YORK—Amazon.com Inc. Chief Executive Jeff Bezos said Wednesday that the online retailer would collect taxes on its sales to California residents by 2013.

California legislators and Amazon officials agreed to a deal in Sacramento earlier this month over the issue of sales-tax collection from online retailers. The lawmakers said they would delay the enactment of a new law, which would require Internet stores with retail-related offices California to collect sales tax, until September 2012. In exchange, Amazon agreed to stop pursuing a ballot measure to repeal that law and to lobby Congress to pass federal Internet sales-tax legislation.

The California law would go into effect on September 2012 if Congress doesn't enact federal legislation by then. If Congress does pass a law, then the California legislation would go into effect in January 2013.

"In either case, we are going to start collecting," Mr. Bezos said in an interview.

Read more: http://online.wsj.com/article/SB10001424052970204138204576598883358407422.html

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google the title for the full article.

[slackmaster]

1. I'm glad they worked out a deal that keeps people employed and goods moving

Articles about this situation often paint an incomplete picture of the impact of what Amazon had threatened to do on California's state budget. Sales tax amounts to about 1/4 of the revenue side. The majority - about 55% - comes from personal income tax.

Anything that results in a loss of jobs in this state is sure to hurt more than the amount of sales tax (actually USE tax) that California consumers are neglecting to pay on out-of-state purchases.

[Crazy Dave]

2. It's not as convenient ordering as it once was either

You used to be able to save time and money ordering online but all the carriers have gotten sorrier and sorrier as far as deliveries and now if we have to start paying sales tax then we might as well go to the store anyways. Makes returns easier that way too.

[Booster]

3. I've sworn off of Amazon since reading about the horrible

working conditions there. Sorry, I don't have a link but it was here on DU that I read it.

[Daphne08]

11. Here it is.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1962008

[SoapBox]

4. Bummer...

it was a place to shop for some stuff and save a few bucks, that us LITTLE people don't have too many of!!!

It makes me sick to think how Sacramento is just licking their chops over this money.

AND, the sales tax thing is out of control. I like the idea that everyone pays (however, what happened
to the rich and powerful, avoiding sales taxes on their yachts, by parking them in Mexico for a few weeks????) BUT
in my area of Los Angeles, it's almost TEN PERCENT! Sorry, that is insane. The sales tax gravy train needs to have some brakes put on it.

[Crazy Dave]

8. You sure hit the nail on the head

There was something just a few weeks ago about tax breaks for corporate/private jet buyers. How it would hurt the industry and the people who buy them if they had to pay the sales tax or something like that.

[OrwellwasRight]

16. What is insane is that CA state and local governments

have to resort to increasing the sales tax because it is the only tax that is politically feasible to raise (can't raise property taxes without winning a 2/3 majority of voters and state Republicans won't agree to any increases in the income tax--ever).

Sales taxes are notoriously dependent on the economy (recession = consumers spend less = reduced sales tax revenue), so when it is such a huge portion of the revenue, and other revenue streams are virtually off limits, the only choice the legislature, city councils, and county boards of supervisors have is to raise the most regressive tax we have.

Thank you Howard Jarvis and Prop 13!

I say online buyers should have to pay. It's only fair. And it promotes buy local, which is another good idea.

[frazzled]

5. The states need these sales taxes

As far as I'm concerned, they should have to charge tax for any transaction in any state to which they ship. I'm a great hunter of Internet bargains (I just ordered printer toner from Amazon because it was cheaper and no delivery charge, I'm afraid to say). I'd be willing to pay that tax on Internet purchases because in the long run, it will be better for the economy of my state. And thus better for me.

The no-sales-tax deal was never meant to be permanent. It was to allow startups of Internet businesses. It's time to end it, frankly.

[slackmaster]

13. Purchases that you make outside of your home state are NOT exempt from your state's sales tax

It's called use tax. You are responsible for paying it.

I'd be willing to pay that tax on Internet purchases because in the long run, it will be better for the economy of my state.

What's stopping you from paying it now?

[frazzled]

17. I think it should be up to the business to collect it at the time of purchase

Why put the undue burden on individuals to save receipts for hundreds of small items throughout the year? Plus, you know people don't pay this tax, especially those who just send in the short form or who do not owe state taxes. The states are being shortchanged when business do not collect it.

[slackmaster]

22. So, you would put the burden on businesses to keep track of thousands of local tax rates nationwide?

Why put the undue burden on individuals to save receipts for hundreds of small items throughout the year?

It is already your civic duty to do that.

Plus, you know people don't pay this tax...

People who don't pay it are breaking the law.

[frazzled]

26. Bricks and mortar businesses have to do it every day

And yes--internet businesses must keep records of all their sales anyway. They employ bookkeepers. And no, people don't remember to write down every sweater from L.L. Bean they sent for a Christmas gift or flowers they ordered for a sick relative in the hospital and then collect all that information a year later. The states lose revenues when people don't itemize purchases in this way.

[slackmaster]

31. A brick-and-mortar business only has to collect tax at ONE rate from every customer

Except for sales to resellers, who pay zero sales tax.

The states lose revenues when people don't itemize purchases in this way.

Yes, a lot of people cheat on their taxes.

[frazzled]

33. It ain't rocket science.

I'm sure a high-school junior programming nerd could come up in about 30 minutes with a program to compute the sales tax automatically when the zip-code is punched in. If they can deal with all the complicated shipping deals, they can deal with taxes.

[OrwellwasRight]

20. What stops people from paying it now is that it is a PITA.

You really expect people to save all their online receipts from a whole year, add them up, figure the tax, and send it in of their own volition? It's not gonna happen. That's the reason stores collect it for shoppers in brick and mortar stores. The reality is it would not otherwise be paid. There is no reason internet retailers should not do the same. Collect it and submit it on our behalf.

[slackmaster]

23. And it WOULDN'T be a PITA for businesses to track taxes owed in every state?

There is no reason internet retailers should not do the same. Collect it and submit it on our behalf.

That will raise the cost of things you purchase online, because it costs real money to track, report, and remit taxes. By expanding the responsibility of a business to collect tax from one state to fifty (plus a gazillion local rates), you'd be making businesses do extra work to remit payments for which they receive no benefit - In-state sales taxes pay for things like roads and schools that benefit in-state businesses.

But maybe that's the real agenda here.

[Occulus]

27. Pain in the ass, yes.

TOO FUCKING BAD.

These companies have lawyers they already pay big bucks to for exactly this sort of thing.

Stop pretending keeping track of tax rates is too big a job for poor widdle Amazon. We aren't that goddamned dumb.

[OrwellwasRight]

29. Actually no.

There are numerous software programs that calculate it for you by zip code. Many businesses already do it now (Nordstrom, Voctoria's Secret, Home Depot).

So, no, there is no equivalency between a single shopper, who may have little to no record keeping skill or experience, and a business, which by its very definition IS IN BUSINESS, and therefore by law and in the interest of making profit already keeps track of each and every transaction, pays some form of business taxes, and in almost every other way is prepared for and capable of doing this additional accounting task.

[OrwellwasRight]

30. Oh, and PS,

Of course collecting more taxes to pay for more services is the REAL AGENDA here. There is no other agenda, real or otherwise.

Online businesses should do the same thing brick and mortar businesses have been doing FOREVER.

[slackmaster]

32. Sales tax accounts for only about 1/4 of the state of California's revenue

The MAJORITY of our revenue comes from personal income tax.

[OrwellwasRight]

34. So?

a) That is no reason not to collect more; and
b) I already wrote about how Prop 13 and intransigent Republicans effectively prohibit CA from raising income and property taxes, so sales taxes are the only taxes they can work with; and
c) Even if B were not true, I repeat, "so?" The fact that 25% of tax revenue comes from a certain kind of tax is not an argument in and of itself not to try to increase collection of that tax. I fail to see your point.

[JJW]

6. "F" Jeff Bezos

Citizens should be protesting. People already pay income tax, so sales tax is simply double taxation.

[OrwellwasRight]

19. It is not double taxation.

Sales taxes are regressive. As a progressive, I support property and income taxes over sales and other consumption taxes, but sales taxes are not "double taxation." It is taxing a different thing: consumtion v. income.

Did I miss the day this board became the Tea Party Underground, in which we simply argue against all taxes all the time?

[RUMMYisFROSTED]

7. I prefer: "California to Collect Amazon Sales Tax by 2013"

:think:

[mod mom]

9. why be allowed to wait until '13? CA retailers are required by law to collect sales tax.

I never understood why states allowed online retailers not to do the same. It seems to me they could say if you want to do business in our state comply with our laws.

[slackmaster]

14. It has always been the BUYER'S responsibility to pay sales tax on out-of-state purchases

http://boe.ca.gov/pdf/pub79b.pdf

[slay]

10. When will we be able to collect taxes on the multi-billion dollar marijuana industry?

is what i'd like to know. people want it legal - and we sure as hell could use the tax money - and will put an end to much gang violence and stop that money from going to gangs or to fund shady CIA black OPs.

[flamingdem]

25. The pot growers were against Proposition 19

Like Bezos they're better off not paying taxes

[slay]

28. I'm not talking about what's good for pot growers - i'm talking about what's fair, and right, and

good for the country. pot growers on any large scale are usually greedy paranoid assholes only in it for the money. they know they couldn't charge $3000/pound if it was made legal. remind me now - how much does a 5 pound bag of sugar cost?

[SoCalDem]

12. There should be an "internet sales tax" rate that's uniform

and should be split equally between the originating state and the delivery state. With sophisticated software these days, it should be no problem to figure out.

I shop online because I want more variety than I have at the big-box-mall-mega-everything-alike stores, and I like to "shop" at 3AM..and I like having stuff delivered to me, instead of having to drive all over looking for things:)

[slackmaster]

15. Sales tax on out-of-state purchases is already covered by existing law in every state

For California residents:

http://boe.ca.gov/pdf/pub79b.pdf

[frazzled]

18. We need to redefine "in-state" and "out-of-state" for the virtual era

Those are not meaningful terms when it comes to Internet business.

[SoCalDem]

21. yep..maybe set it at 8%..4 for seller state & 4 for buyer state

Each would get something..and of course if it's an outfit with brick & mortar within buyer state, and seller state (the same), the prevailing rate would apply.

[slackmaster]

24. Do you remember the expression "Let your fingers do the walking?"

It's really very simple. If I buy something by mail order or Internet from a business that physically resides in Arizona and has no office in California, it's the same as if I drove there to make the purchase. Except it produces less pollution, etc.