OT Amazon to begin charging state sales tax

Absolutely nothing has changed - the forced collection of sales tax by one state against a purchase in another state is still unconstitutional. Quiill vs. ND is still the legal authority and there have been no rulings by any courts that have reversed this.

What has changed is that states are atttempting to get around the SCOTUS ruling by stretching the definition of nexus beyond the breaking point, claiming that "affiliates" and separate legal entities owned by the parent in that state are sufficient to create a nexus.

In the case of affiliates, Amazon and others have told the states to pound sand and stopped paying affiliates in those states. In the case of distribution centers and separate legal entities (read: software development centers), Amazon has chosen to negotiate collection terms with those states. Fine as far as it goes.

The legislation that someone referenced earlier in this thread is an attempt to create a new national sales tax that would be applied to transactions that are not currently taxed at by states. And if you think it would stay that way, I have a bridge I'd like to show you.

Reply to
Robert Neville
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it seem ok enough that amazon have the unfair advantage, of paying no saletax, over local shops just because they sell stuff over the internet and not over the counter

-Lasse

Reply to
langwadt

But the tax that Michigan, for example, expects people to pay on out-of-state purchases is not a "Sales Tax" but a "Use Tax," and I assume that there is a Michigan law that establishes such a tax.

Perce

Reply to
Percival P. Cassidy

Absolutely. But collecting that tax is Michigan's problem, not Amazons when Amazon doesn't have a presence in Michigan.

Reply to
Robert Neville

True enough, but the point being that there is no way to compel ME, or a ME entity (corporation), to collect a tax for MI. MI *can* (attempt to) collect the tax from the MI resident. However, that isn't working out so well.

Reply to
krw

Here's another one that may be worse.

My business was audited by the state comptroller's office. The on-site auditor wanted to see invoices we had generated for our out-of-state sales. I declined to provide them.

Glad I did.

My tax attorney told me auditors from other states also work in my town and there's a background communications link between them. Had my state auditor discovered an invoice to, say, a client in Missouri, she would have snitched out that fact to the local Missouri auditor. That Missouri auditor, in turn, would pass on the information to the Missouri comptroller's office. A herd of people with green eye-shades and sleeve garters would then descend on my client, demanding to know why he didn't pay the sales tax on an out-of-state purchase.

Reply to
HeyBub

In California now, the law has changed. If I sell a unit to a customer out of state, but SHIP it from California, I MUST charge California sales taxes on the unit. We double checked on that!!!

Charlie

Reply to
Charlie E.

In addition to complexity and ignorance, there's at least one more reason: Simple refusal.

Several years ago, Dallas County, Texas, quit sending out ad valorem tax notices on automobiles registered in the county. There was such widespread refusal to pay the tax, that it cost the county more to send out the tax notices than they collected.

Reply to
HeyBub

Yep. Quill had no footprint in North Dakota ("nexus"). The state DID try to make their case with the following argument:

  1. Quill ships copy paper into the state.
  2. Some (all?) of this paper ends up in landfills within the state, therefore,
  3. Quill has a responsibility to see to it North Dakota is recompensed for this expense.

You can't make this stuff up.

Reply to
HeyBub

begin?

They all ready do charge tax (NYS tax for me)

I rarely order from them now.

Cheers

Reply to
Martin Riddle

On Wed, 23 Nov 2011 17:11:12 -0600, "HeyBub" wrote: .

All the car dealers would move their vehicles to a neighboring county on Dec 31 and bring them back on Jan 1. Taxable basis was if the car was in Dallas county at 12:01 AM on Jan 1.

Reply to
aasberry

After listening to a little bit of the Senate discussion... Maybe what has changed is the technology for Amazon and others (over a certain size) to charge the tax and have the tax instantly credited to the appropriate state. In that way, Amazon will not be technically collecting the tax because it won't actually receive the tax, it might not see any benefit like cash flow or whatever.

Yup.

Reply to
John Doe

It seems unfair that a local store can supply the merchandise immediately when one has to wait three days for that same merchandise to arrive from Amazon. To be "fair," the local brick and mortar store should be required to hold the merchandise, much like a lay-away, for at least a couple of days to ensure "fairness."

Of course if you needed another box of nails, a replacement for a broken drill-bit, or a water pump for your car, you might be slightly inconvenienced by waiting a few days, but at least the universe would take a big step toward fairness.

It's for the children.

Reply to
HeyBub

well then in exchange for the waiting time you should have to pay sale tax then it would be fair

that is if you are lucky enough that there's still a shop to go to and it hasn't been closed because it didn't sell anything because every one bought stuff online to avoid the sales tax

-Lasse

Reply to
langwadt

I only shopped mail order or online for what I couldn't get locally, or it was so damned overpriced that I wouldn't. I needed a 10' HDMI cable recently. $3.49 delivered, or $49.99 local, and both were made in China.

Reply to
Michael A. Terrell

So you managed to avoid paying about $3.00 in sales tax..

Reply to
Spehro Pefhany

And to save gas, time, and now that its holiday season..FRUSTRATION, ANXIETY, and RAGE. I do not go anywhere near a mall or big-box electronics joint this time of year. Hate it.

The 'Internets' and all the wonderful online stores have changed the way I shop. Now when I need something I can research the hell out of different TV's for example. Old way is going to a B&M store and selecting from a very limited inventory. I can spec. a TV, find the best price, and have it delivered to my door for free. Does Best Buy or Wally-World deliver for free? Nope. I don't need to transport that huge box and make sure the load is tied down. I don't have to handle the cumbersome and heavy box until it arrives at my front doorstep.

At the end of the day, I got the *exact* TV I wanted because I didn't have to pick from a limited inventory. I wasn't pressured by some sleazy salesman that smells like garlic. I didn't 'settle' for what they had, vs. what I really wanted. There were no crying babies and cranked-up gangster rap playing on demo units. No fighting for a parking space down the south 40, in the rain. No thank you, I do all my shopping online now. Oh, did I mention its much cheaper this way too?

Reply to
G. Morgan

It's not luck - it's competition. There's a Stop 'N Rob on every street corner. If you ABSOLUTELY MUST have a box of corn flakes in the next twenty minutes, paying $6.00 for the box is of secondary importance.

Reply to
HeyBub

And the $46.50 difference in the price, knucklehead!

Reply to
G. Morgan

nothing wrong with buying online, my point was that just because the headquarters of the online shop is in a state with no sales tax they shouldn't be exempt

several shops here have both a regular shop and an online shop, you can shop online and have it shipped or you can go pick it up at the store some even have drive-in

-Lasse

Reply to
langwadt

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