Kindle Forum banner
1 - 20 of 21 Posts

·
Registered
Joined
·
9,688 Posts
Amazon has no physical presence in California, so this hinges on their California affiliates constituting a physical presence. They dump the affiliates and it all goes away. The affiliates don't get an Amazon commission, make less money, and pay less taxes to California. Amazon continues on. California collects even less.
 

·
Registered
Joined
·
1,508 Posts
kookoo88 said:
They did it in Colorado. I can't be an Amazon affiliate. :(
I am also in Colorado and woke up one day to find I could no longer be an Amazon affiliate. Pissed me off, but I do think the issue of sales taxes needs to be settled as it is unfair to local retailers. But it needs to be settled nationally. As a retailer I don't want to have to deal with 10 zillion tax zones in every state and every locale. I am not sure how this will work out, but it has to be easy for small vendors.
 

·
Registered
Joined
·
9,688 Posts
It was settled nationally in 1992 when the US Supreme Court ruled that states can't tax a firm unless it has a nexus within the state composed of property or employees. The states don't like it, so they are now resurrecting the issue using the affiliates to contend a nexus exists. So Amazon cuts off the affiliates. Then it's simple and easy for everyone again.
 

·
Registered
Joined
·
65 Posts
Government will tax anything and everything it can. In Colorado, they even taxed rain! I know that there are people reading this who simply won't believe that, but it's true. It was called the stormwater fee, and has since been rescinded, but to add insult to injury, while we were taxed for the privilege of having rain fall on our homes, we weren't' allowed allowed to collect rain water. Colorado law says that even if rain falls on your property, you're not allowed to have it. Further, you're only allowed to use water that comes out of the tap once. You can't take your bath water, for instance, and use it to wash your car. So basically we were taxed for something that God gave us, but we couldn't keep.

http://www.newsfirst5.com/news/stormwater-fees-causing-controversy/
 

·
Super Moderator
Joined
·
67,558 Posts
I would just note that the state's purpose seems to be to find a way to require Amazon (and other retailers) to collect sales tax at the source (and remit to the state) for people who live in the state and purchase from them. The state is not trying to tax Amazon but trying to ensure that Amazon's customers who reside in the state do, in fact, pay the sales tax to the state as they are required to by state law.

Why? Because the customers are not complying with the law as it is and the state sees compelling the retailer as the best way to increase compliance/revenues. If customers routinely paid up, there'd be no need for the law. If the law doesn't pass and/or the major out of state retailers simply disallow affiliates so that they don't have to increase their own administrative burden, the state will next begin to go after individual residents to collect the tax on out of state purchases.

Please note that I'm not making any observations about whether it's a good or bad idea, or whether it's legally defensible or not -- simply noting the rationale and underlying problem. . . . .

I will say that, from a personal point of view, I don't have a problem paying sales tax if it's part of my state's tax law. It is a lot easier if the retailer just collects it than if I have to go through my purchases every year to figure a lump sum to add on to my state tax bill. :-\

I realize, of course, that a large majority of people probably don't know about the requirement to pay sales tax on out of state purchases and that, even of those that do, they prefer to ignore the law on the theory that there's no way for the state to ever catch them -- which is probably true, at least for now.
 

·
Registered
Joined
·
1,300 Posts
Terrence OBrien said:
Amazon has no physical presence in California, so this hinges on their California affiliates constituting a physical presence. They dump the affiliates and it all goes away. The affiliates don't get an Amazon commission, make less money, and pay less taxes to California. Amazon continues on. California collects even less.
Sounds like a basic, worldwide, standard government solution. *sigh*
 

·
Registered
Joined
·
2,781 Posts
Most states are in a big money hole and are trying to tax and enforce tax on anything they can--with California's hole about 6 feet deep.  Our recent economic debacle continues and state legislators keep looking for more tax to collect.  Even if CA wins it is only a small short term solution.  In my state ALL taxes have escalated over the last 10 years to a point where it is in the top 3 of worst tax states to live in.  With all the taxes I see little improvement to anything over the last 10 years.  I suspect other states will try and jump on the bandwagon too but it's no real solution to their problems. 
 

·
Registered
Joined
·
5,554 Posts
I moved last year from east coast. I hope these decisions don't backfire. CA is broke but should think through. It will come back but need to take care of their well-fare state attitude. Putting too much tax on anything is not going to help.
 

·
Registered
Joined
·
65 Posts
I just heard on the news today that Amazon is negotiating with California to gain five years sales tax exempt status if they build a facility in California which will bring in about 2,000 jobs.  I'm not sure where this will go. States have been trying to tax commerce on the Internet for a long time.
 
1 - 20 of 21 Posts
Top