Damn!!! Amazon will be collecting tax in Texas now

exalted512

Starting July 1st. That sucks.
http://www.texastribune.org/texas-taxes/budget/amazon-state-settle-sales-tax-fight/
-Cody

chumlie

You can bet more will follow.

unclebiskabobka

Dah.....well, I'm glad I order more from Newegg.

rooftop59

Yea that does kinda suck because that is one of several main incentives for shopping on amazon for me. However, we don't pay state income taxes here, and across the board Texas tax rates are low. Yet we are making huge cuts to higher education because we refuse to raIse sales tax .1 cent. I am more than willing to pay taxes on what I buy on amazon if it can keep our colleges (especially the community colleges) open.

exalted512

Don't get me started on universities...and I work for one.
-Cody

heiney9

In Illinois even though on-line retailers don't charge state sales tax you are required to pay it on anything you bought out of state on-line when you file your taxes. Of course few people do and it's not really enforced. So this doesn't surprise me. Many states, as part of the tax code, require you to pay sales tax on stuff bought on-line in another state. Not sure if Texas is that way currently. If it is, you should have been paying sales tax all along. If not, then this is new to you.

H9

BeefJerky

Well that's not good. I guess I'll have to try and think of what I need to buy and get it before that date. :cheesygrin:

That said, I will continue shopping there anyway. In my experience, their service has always been fantastic; much better than other internet retailers. They also have fast and reliable shipping.

rdb2001

If this trend continue's, it might be time to invest in some bestbuy stock. It will be sure to rise of this is passed for more states.

heiney9

Like I said many states already require you to pay tax on on-line out of state purchases. They just aren't enforced. So for those states this will be nothing new, just enforced.

H9

heiney9

http://www.ecommerce-blog.org/archives/the-myth-of-tax-free-internet-sales/

Again, I can only speak for Illinois, the payment is not enforced currently, that's why few people pay it when filing their state income tax. If you look Texas has required all along you pay sales tax on out of state purchases.

H9

cnh

Just think of it as the "free ride" being over! Let's be a "little" honest. We've all benefited from a tax free internet and part of that has probably led to a decline in state tax revenues, fewer purchases at retailers in our state and a continuing downward spiral of retail businesses as "everyone" flocks to buy cheap products off a site that has so much less overhead than concrete stores that have to pay employees, cashiers, stockroom attendants, managers, a janitorial crew, plus benefits packages, etc.

Combine that with most of our consumer products (manufacturing) getting outsourced to the Eastern ghetto of "super-sub minimum wage/no benefit/job security factories" that can violate all and any environmental controls/regulations. And what do you have left: Ghost sellers (internet presence with central storage warehouses full of Chinese goods).

Now, I'm not arguing for more taxes here, necessarily, but you can see why such a trend might be coming your, our way. It's not without it's history.

I'm not really sure what the future of "retail" is in this country outside of Walmart (and it seems like the Waltons' are involved in some interesting international scandals of late, power begets power begets power). BTW, I teach those who are "empowered" and their sense of "entitlement" is "Legion". They can do nothing "wrong" and they think they deserve "everything"! If you don't come from such a background, well, you're often shocked by it!

Oh well, what can us peons do?

cnh

heiney9

All but 3 states have all along required a "user tax" for items bought on-line. It seems Texas is the first state to start enforcing it, but on just one e-tailer (amazon). If I were Amazon I'd push for it to be applied equally because that gives other e-tailers an unfair advantage if a state isn't enforcing the user tax already on the books.

H9

polrbehr

heiney9 wrote: »

Like I said many states already require you to pay tax on on-line out of state purchases. They just aren't enforced. So for those states this will be nothing new, just enforced.

H9

It's been going on for a few years now, in NY they have a line on their IT-201 Form for such taxes to be paid... "voluntarily". In the instruction book they simply allow you to estimate how much you owe according to what your AGI was on your Fed return.

IIRC, this year I ended up putting down $35 for uncollected tax, which is not too terrible when I consider how much money I probably spent on online purchases; at 8.625%, it would've been a hell of a lot more than $35 in tax!

But they get something out of it, so I guess that's what matters most... to them, anyway.

BlueFox

Amazon will start collecting tax for CA next year. Oh well. It was nice while it lasted. However, I will still use Amazon. While saving tax money is nice, the biggest benefit of Amazon is not having to go to a store, park, walk around looking for something and hope it is in stock, stand in line, pay for it, haul it out to the car, and drive home.

On the other hand, because of that convenience, I have bought way more stuff than I would have without Amazon. :eek:

Face

I've been paying NYS sales tax through Amazon for a few years now.

shack

Amazon just built a couple of distribution centers in Tennessee so now they have worked out a "'deal"'with the Govenor where we don't have to pay sales taxes till 2014. Once Amazon starts collecting the sales tax there will be better alternatives for me (assuming there are no federal laws in place requiring all internet sales to report sales tax by that time).

Part of that deal is that Amazon had to send out the following:

Hello from Amazon.com,

Thank you for being a loyal customer of Amazon.com LLC.* We appreciate your business and look forward to continuing to provide you vast selection, low prices, fast delivery and convenience.*

As you may know, Amazon.com LLC is not required to collect sales or use taxes in Tennessee.* However, the state of Tennessee requires us to provide the following notice to you:

You may owe use tax on purchases you made from Amazon.com LLC during the previous calendar year. The amount of tax you may owe is based on the total sales price of the items you purchased during the calendar year unless an exemption exists under state law or you have already paid the tax. A sale is not exempt under state law because it is made through the Internet. The total sales price of purchases you had shipped to Tennessee in 2011 was $xxxx This is the amount that you may include on your Tennessee use tax return to calculate the appropriate use tax owed unless you have already paid the tax.

? While Amazon.com LLC does not report this information directly to the state of Tennessee we are required to provide this information to you based on Tennessee Code T.C.A. ? 67-6-5 (f)(3) signed into law March 23, 2012.
? This notification has been sent to all customers that had purchases delivered to Tennessee.

Sincerely,
Customer Service
Amazon.com

madmax

This same thing happened in Colorado. A few days after the law took effect Amazon closed every location. CO got greedy and lost a LOT of jobs because of it. I heard of another state where the same exact thing happened but can't recall the state.

dkg999

Well before we rail on Walmart, we might want to take a more unbiased look at US companies that have run afoul of the FCPA. It's an almost impossible act to follow when working in other countries and regions. I'm not sure how we tie Walmart's FCPA issues with the collection of state sales taxes.

States are hungry for tax revenue, and the fact that you can purchase over the internet and avoid paying sales taxes is something that has frustrated the money grabbing monsters in state revenue departments for many years. Collectively the states are going to find ways to collect the sales tax revenue for internet purchases. We recently had a judge in IL rule that the states collection of internet sales tax was unconstitutional. That ruling probably isn't going to stand very long. So either you bend over and take it, or we buy a chunk of Mexico and charter a new state with more consumer friendly laws.

txcoastal1

They have a warehouse in TX, same thing happened when TigerDirect opened a hub in TX, so Amazon was negligent anyway.

exalted512

madmax wrote: »

This same thing happened in Colorado. A few days after the law took effect Amazon closed every location. CO got greedy and lost a LOT of jobs because of it. I heard of another state where the same exact thing happened but can't recall the state.

Amazon threatened to do the same with Texas. I thought the issue was done several months ago. From what I read, Amazon told Texas if they start making them charge tax, they were packing up and leaving and Texas gave in.

txcoastal1 wrote: »

They have a warehouse in TX, same thing happened when TigerDirect opened a hub in TX, so Amazon was negligent anyway.

Amazon claimed that their warehouse didn't meet the standards of what would have been considered making them tax, but Texas changed the law...
-Cody

tonyb

heiney9 wrote: »

http://www.ecommerce-blog.org/archives/the-myth-of-tax-free-internet-sales/

Again, I can only speak for Illinois, the payment is not enforced currently, that's why few people pay it when filing their state income tax. If you look Texas has required all along you pay sales tax on out of state purchases.

H9

Well, in some cases, they are keeping track. Cigarette sales over the internet is one they keep tabs on. I know people that received bills from the state for smokes bought over the internet. They just sit on it awhile then hit you with a 500 dollar bill.

Now, we all said that internet sales was going to be taxed, and it will, in every state. Too much coin there in a country looking for ways to raise more coin. Why do you think they want to pass laws to track your every move on the internet ? Like they don't already, just need to make it legal for all the states to track and collect.

DMara

cnh wrote: »

Just think of it as the "free ride" being over! Let's be a "little" honest. We've all benefited from a tax free internet and part of that has probably led to a decline in state tax revenues, fewer purchases at retailers in our state and a continuing downward spiral of retail businesses as "everyone" flocks to buy cheap products off a site that has so much less overhead than concrete stores that have to pay employees, cashiers, stockroom attendants, managers, a janitorial crew, plus benefits packages, etc.

Combine that with most of our consumer products (manufacturing) getting outsourced to the Eastern ghetto of "super-sub minimum wage/no benefit/job security factories" that can violate all and any environmental controls/regulations. And what do you have left: Ghost sellers (internet presence with central storage warehouses full of Chinese goods).

Now, I'm not arguing for more taxes here, necessarily, but you can see why such a trend might be coming your, our way. It's not without it's history.

I'm not really sure what the future of "retail" is in this country outside of Walmart (and it seems like the Waltons' are involved in some interesting international scandals of late, power begets power begets power). BTW, I teach those who are "empowered" and their sense of "entitlement" is "Legion". They can do nothing "wrong" and they think they deserve "everything"! If you don't come from such a background, well, you're often shocked by it!

Oh well, what can us peons do?

cnh

I agree. This internet tax is inevitable and is helpful for local economy in the long run. I won't fight against it.

AsSiMiLaTeD

I have no problem paying sales tax over the internet. Texas only has a sales tax, if I go buy a bunch of stuff online to avoid paying the tax then I feel like I'm cheating, I'm still getting the benefit of all those tax dollars without paying my fair share.

shack

AsSiMiLaTeD wrote: »

I have no problem paying sales tax over the internet. Texas only has a sales tax, if I go buy a bunch of stuff online to avoid paying the tax then I feel like I'm cheating, I'm still getting the benefit of all those tax dollars without paying my fair share.

When I calculate what I pay DIRECTLY in Federal Income taxes, R/E taxes, SS, Medicare, and sales taxes (NOT counting all of the hidden taxes on things like gas, entertainment, etc, etc) I'm pretty sure I pay my fair share and then some. I may not be part of the 1% but....I paid enough in taxes last year to buy a really nice car or a small house. If I can avoid a buck or two by buying online...I'll do it in a heartbeat and never feel I'm cheating anyone.

tonyb

Amen to that ^^^^^^^^^^

I threw up in my mouth when I heard "fair share"......again.

Systems

shack wrote: »

When I calculate what I pay DIRECTLY in Federal Income taxes, R/E taxes, SS, Medicare, and sales taxes (NOT counting all of the hidden taxes on things like gas, entertainment, etc, etc) I'm pretty sure I pay my fair share and then some. I may not be part of the 1% but....I paid enough in taxes last year to buy a really nice car or a small house. If I can avoid a buck or two by buying online...I'll do it in a heartbeat and never feel I'm cheating anyone.

"If you make any money, the government shoves you in the creek once a year with it in your pockets, and all that don't get wet you can keep". ~Will Rogers

tonyb

Smart man that Will Rogers, except these days they hold you under water in that creek a tad longer. Make sure all of it gets wet.

Systems

I read a quote from Reagan once and I cannot remember the words exactly, but it was something along these lines:

A taxpayer is someone who works for the government, but does not have to take the civil service exam.

:cheesygrin:

tonyb

.....and an illegal is someone who also works for the government who doesn't have to take a citizenship test.

obieone

Anyone who feels they're not paying their fair share is free to send the IRS, or their state revenue office a blank check

tonyb

obieone wrote: »

Anyone who feels they're not paying their fair share is free to send the IRS, or their state revenue office a blank check

LOL....Yeah....right. Mr. blank check himself Warren Buffet has owed a billion in taxes that he keeps fighting. Large amounts of government workers owe back taxes, and the treasury secretary himself can't seem to figure out Turbo Tax. Paying a fair share is only meant for you little people, not them. If they paid more as a rate, they would just buy themselves a new tax deduction to eliminate it. But....it sounds good in an election year.