AMAZON US getting chaotic.

"Uncle Sam" has nothing to do with sales taxes because that's a States issue.

 

State sales tax is not Federal (Uncle Sam), it's state. Contributing to my home state's infrastructure doesn't bother me.

 

I knew that and I thought about it when I was posting, but I still did. I should have said the "GOVERNMENT" or something.

Anyway, I understand some people do not mind paying state taxes, but since I disagree with how they spend the money I do.

 

And a company is not required or entitled to collect sales tax unless they have a nexus in the state in which the buyer resides. However, Amazon has capitulated to the demands of states without an Amazon nexus because they've determined that sales tax will hurt their online competitors more than it hurts them.

 

The tax laws in most states now require you to pay sales tax for internet purchases made over the internet that were not collected by the retailer. So, while you may think you're getting away scot-free, if you are not reporting those purchases on your state income tax forms, you are breaking the law.

 

This is not correct. The states that are requiring Amazon to collect sales taxes are doing so because (1) it's a way to increase revenue and (2) they have reasoned that having an internet presence in their states constitutes a "nexus" as you put it. Amazon eventually gives up fighting it because they realize that doing so will cost them more in legal fees than they're willing to spend. Here in NY, any retailer that wants to be spared the expense of collecting the tax simply refuses to sell their product to anyone residing in NY. See Wounded Bird, for instance. Soon, all retailers will be required to collect sales tax because the infrastructure that exists within each and every state is way too feeble to be able to track purchases and force people to be honest on their tax returns (see post #55).

 

While every state wants a new piggy bank to break open, the assertion that an internet presence constitutes a nexus is not established law. Ultimately, the states are attempting to bully large etailers into submission without legal jurisdiction.

It is true that individuals are supposed to pay taxes on out of state purchases (use taxes), and those taxes are typically not paid, and historically the states have not made any serious effort to collect them (except on major purchases such as automobiles). So, technically, you are legally supposed to be paying your state's taxes to someone every time you make a purchase, in or out of state.

But forcing Amazon to collect taxes for states in which they do not have a nexus is actually unconstitutional. As the Supreme Court ruled in Quill Corp v. North Dakota (1992), a business has to be physically present in a state before they can be forced to collect taxes on behalf of that state. Otherwise, such taxation can be considered to be taxes on "interstate commerce," and that is prohibited by the constitution.

 

That ruling occurred before the real onset of internet sales, and therefore could not possibly be seen as a ruling of the collection of such taxes as "unconstitutional". I did NOT say that "internet presence as nexus" is established law. Any state has the right to claim it as such, however, if Amazon does business there. Would you prefer that a state prohibit Amazon from doing business within its boundaries? The Fed cannot stop a state from doing this, btw. The states are "bullying" only Amazon under these assertions, btw. Maybe a sign that Amazon has gotten too big for its britches? Do you really feel that they have the might to fight the states they're doing business in? Your initial assertion that they are capitulating for the reasons you give is another example of over-thinking and giving too much credit for pseudo-intelligence where none is due.

I love it when people feel they're getting screwed because Amazon is being "forced" to collect taxes.

Regarding the collection of taxes on out of state purchased automobiles, THAT happens at time of purchase simply because you would not be able to register the car in your state if you do not pay them at that time. You pay them directly to your state's DMV. They are NOT collected by the seller. You're talking apples and oranges.

 

I'm seeing great service from Prime. In fact, getting a video credit for stuff I don't want right away seems appealing to me.