tube fanatic Posted May 31, 2012 Share Posted May 31, 2012 http://www.philly.com/philly/business/homepage/20120531_Amazon_to_build_warehouses_in_N_J___collect_sales_tax.html I imagine the retailers of high priced items will celebrate when this happens. It will be interesting to see if it results in greater price competition. Quote Link to comment Share on other sites More sharing options...
Moderators dtel Posted May 31, 2012 Moderators Share Posted May 31, 2012 Why not, NJ already has the residents bent over already with every charge they can think of. Guido's not gonna be happy [:@] Quote Link to comment Share on other sites More sharing options...
Chris A Posted May 31, 2012 Share Posted May 31, 2012 : Amazon To Pay Texas Sales Tax We still have 4 1/2 years to buy all that we need before the taxes start. Benjamin Franklin: "Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes." A letter to Jean-Baptiste Leroy (13 November 1789) Quote Link to comment Share on other sites More sharing options...
WS65711 Posted May 31, 2012 Share Posted May 31, 2012 Soon we can all start shopping at the local retailer once again... Where we can hear that all too familiar phrase . . . "We don't have it, but we can order it for you......" [bs] Quote Link to comment Share on other sites More sharing options...
Fish Posted May 31, 2012 Share Posted May 31, 2012 As a guy that hates taxes, I never understood how anyone could by anything non essential and not pay taxes on the item.I'm pretty sure the loss of that tax revenue has a huge impact on everyone. Quote Link to comment Share on other sites More sharing options...
neo33 Posted May 31, 2012 Share Posted May 31, 2012 Not that Newegg has the best price but I don't paid a single penny on tax when I buy from Newegg. Quote Link to comment Share on other sites More sharing options...
Guest " " Posted May 31, 2012 Share Posted May 31, 2012 most state sales tax relates language says the citizen is responsible to comply with the law and pay a tax where indicated. So, that means if you buy an item on line and the vendor does not collect the tax.....you are not relieved of the responsibility to pay the tax, you are still expected to do so and most states have processes and procedures that allow this payment to take place. So that fact that a state does or does not mandate vendors to collect on line sales tax has no bearing on your responsibility to pay the tax. Quote Link to comment Share on other sites More sharing options...
Chris A Posted May 31, 2012 Share Posted May 31, 2012 ...most state sales tax relates language says the citizen is responsible to comply with the law and pay a tax where indicated [i.e., a "use tax"]... http://en.wikipedia.org/wiki/Amazon_taxhttp://www.amiba.net/resources/news-archive/amazon-nexus-subsidiaries "Nexus States are not permitted to tax income of a corporation unless four tests are met under Complete Auto Transit, Inc. v. Brady: There must be a substantial connection (nexus) between the taxpayer's activities and the state The tax must not discriminate against interstate commerce The tax must be fairly apportioned There must be a fair relationship to services provided In general, nexus requirements vary by state and are subject to interpretation, generally by the state's comptroller or tax office, and often in administrative "letter rulings." In Quill Corp. v. North Dakota, the Supreme Court of the United States held that corporations must maintain a physical presence in the state (such as physical property, employees, officers) for a non-transient amount of time, and that such physical presence must be "substantial" for the state to be able to require non-domestic corporations to collect and remit sales or use tax. The Supreme Court's physical presence requirement in Quill is expressly limited to sales and use tax nexus, though the idea of "substantial nexus" has been applied to corporate income tax by numerous state supreme courts.[25]" Chris Quote Link to comment Share on other sites More sharing options...
Guest " " Posted May 31, 2012 Share Posted May 31, 2012 Chris, try buying a car on autotrader.com from a dealer that , becuase of the nexus rules, is not required to collect sales tax.....in states that have a sales tax...they will collect the sales tax when you register the car. Cig and liq taxes are collected routinely thru notification to the consumer once oversigth entities get possession of transaction databases.....NYC does it all the time and as a matter of fact...the fed's will provide matching funds to municipalities who can demonstrate collections and their collection costs. So, the fact remains...the taxpayer is responsible for paying the tax...reguardless if the vendors does not collect it. Quote Link to comment Share on other sites More sharing options...
Chris A Posted May 31, 2012 Share Posted May 31, 2012 Chris, try buying a car on autotrader.com from a dealer that , because of the nexus rules, is not required to collect sales tax.....in states that have a sales tax...they will collect the sales tax when you register the car.Texas neither has a state income tax nor personal property tax, so I'd bet that the issue with Amazon and Texas is that Texas is not taxing through these channels, and therefore has no state payroll "overhead" agencies that watch the Amazon stuff. The story is clearly different in NY, and California, etc. Quote Link to comment Share on other sites More sharing options...
sunburnwilly Posted June 1, 2012 Share Posted June 1, 2012 Got a notice from Amazon in January that I would be required to pay state sales tax on my previous year purchases . Funny they didn't tell me that a year ago . Just gave me a by the way thing this year . Quote Link to comment Share on other sites More sharing options...
JJkizak Posted June 1, 2012 Share Posted June 1, 2012 Just wondering about how the State makes an agreement with the vendor to take out taxes. I assume the State tells the vendor we want you to take out taxes for every sale in out state. Then the vendor says no we will not. Then the State says we will spend millions to monitor every internet sale in our State to collect thousands in revenue. The vendor says fine, you do what you want but we will not remove the taxes. State then says we will sue you under "Blah Blah Blah Act" to get the money. So do they cut a deal or what? The State can't possibly monitor hundreds of millions of internet transactions. JJK Quote Link to comment Share on other sites More sharing options...
Wrinkles Posted June 1, 2012 Share Posted June 1, 2012 : Amazon To Pay Texas Sales Tax We still have 4 1/2 years to buy all that we need before the taxes start. Chris, is there a limited taxation process for Amazon in Texas beginning July 2012 then? From your link: "According to the agreement between the Comptroller of Public Accounts and Amazon, the Company plans over the next four years to create at least 2,500 jobs and make at least $200 million in capital investments in the state and will begin to collect and remit Texas sales tax on July 1, 2012. The agreement resolves all sales tax issues between Texas and Amazon. " Thanks Quote Link to comment Share on other sites More sharing options...
Chris A Posted June 1, 2012 Share Posted June 1, 2012 Mike, This is from the second link in that Slashdot news item that was referenced: "The agreement with Amazon to bring 2,500 jobs to the state comes nine months after the Texas Legislature rejected an offer from Amazon that would have brought 6,000 jobs to the state and $300 million in capital investments. In exchange, Amazon sought a 4 1/2-year exemption from collecting sales taxes on online sales in Texas... 'We love the jobs, we love the investment, but the key thing for us was this incredibly short, 60-day window (to collect taxes). There is no other state in the country that is getting them to collect taxes in 60 days. There are states that are waiting two years; we are 60 days,” Combs said. “Over the last two to three years, (Texas retailers) have said one thing over and over: Have (Amazon) start collecting, please; have them start collecting, please, as fast as you can. With 25 million Texans here, the sales tax collections starting virtually overnight is a phenomenal success for the state, and it certainly levels the playing field for all of these other retailers.' State Rep. John Otto, R-Dayton, a key player in the debate during last year’s legislative session, called the agreement 'a huge step in leveling the playing field between online retailers and brick and mortar stores.' During the most recent legislative session, Otto helped pass legislation to tighten the state’s rules on when online businesses such as Amazon must collect sales tax." I do know that the Houston Chronicle article that I saw once indicated a 4 1/2 year "phase in period". The language you referenced above indicates 1 July 2012. Bottom line: it appears now that it is 1 July 2012. Chris Quote Link to comment Share on other sites More sharing options...
Wrinkles Posted June 1, 2012 Share Posted June 1, 2012 Thanks Chris. It did appear time was shortened considerably. Looks like we only have 31 days. Wrinkles Quote Link to comment Share on other sites More sharing options...
Guest " " Posted June 1, 2012 Share Posted June 1, 2012 Just wondering about how the State makes an agreement with the vendor to take out taxes. I assume the State tells the vendor we want you to take out taxes for every sale in out state. Then the vendor says no we will not. Then the State says we will spend millions to monitor every internet sale in our State to collect thousands in revenue. The vendor says fine, you do what you want but we will not remove the taxes. State then says we will sue you under "Blah Blah Blah Act" to get the money. So do they cut a deal or what? The State can't possibly monitor hundreds of millions of internet transactions. JJK A municipality who I will not mention recently partnered with a state to attempt to collect revenues lost from uncollected sales taxes for transaction conducted on the internet. They were able to construct a database of customers with detailed transactions and used that database to notify the customers of outstanding taxes owed. In parallel a separate program sent folks on the same list a check for 1 dollar. Once the check was deposited....a charge was placed against the accounts for the amount of uncollected tax. Quote Link to comment Share on other sites More sharing options...
Guest " " Posted June 1, 2012 Share Posted June 1, 2012 Got a notice from Amazon in January that I would be required to pay state sales tax on my previous year purchases . Funny they didn't tell me that a year ago . Just gave me a by the way thing this year . exactly correct....depending on the state you live in....the fact that a vendor does not collect the sales tax due to nexus interpretations does not relive the consumer of the obligation to pay the tax. States and municipalities request and get list of transactions and use creative measures to collect the tax due. Quote Link to comment Share on other sites More sharing options...
JJkizak Posted June 2, 2012 Share Posted June 2, 2012 Does that mean the State had to monitor the internet like NSA does to get the data? JJK Quote Link to comment Share on other sites More sharing options...
elitedemo Posted June 5, 2012 Share Posted June 5, 2012 In parallel a separate program sent folks on the same list a check for 1 dollar. Once the check was deposited....a charge was placed against the accounts for the amount of uncollected tax. I wonder how they can legaly justify that, as that sounds extremely fraudulent as you did not authorize charges. You should receive proper notification and ability to review it with that included being your alleged bill. Granted you are suppose to pay taxes on internet purchases anyway but 2 wrongs most certainly dont make a right. If they want to come after you because you avoided thousands in taxes then they have the right to the legal process and not fraudulent withdrawls on dirty tactics. I think I'd be on the authorizing persons doorstep making my own collections right back at them after a stunt like that. I wonder how long it will take them to realize a straight consumption tax would be more profitable and easier to collect with likely less overhead having to manage it...nothing like wasting a dollar to get a penny back I guess the next step for ordering online for those who don't want to pay their online taxes will be bogus names followed by prepaid cards, how much money should we spend trying to combat that? We should probably spend 5 dollars to get that penny back. They just can't think of enough creative ways to tax us yet. My favorite is the sin taxes and then trying to ban them everywhere possible citing health reasons. Once these sin taxed businesses start failing from lack of consumers willing to pay 500% increases I dare to think what is next on the agenda. Maybe I don't need to think to hard and can just look at NY and the 16oz soda concept... Quote Link to comment Share on other sites More sharing options...
djk Posted June 5, 2012 Share Posted June 5, 2012 What are the big-spending thieves in government going to do when they run out of other peoples' money to spend/steal? Quote Link to comment Share on other sites More sharing options...
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