Amazon & Collecting State Sales Taxes

Discussion in 'Marketplace Discussions' started by townsend, Jun 25, 2012.

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  1. townsend

    townsend Senior Member Thread Starter

    Location:
    Ridgway, CO
    I just saw on the front page of the DMN (= Dallas Morning News) that Amazon, starting Sunday (7/1/12), will start collecting state sales tax in Texas.

    Below at the link is an informative U.S. map using four different colors to describe the four different categories of states w/ regard to sales tax: 1) Amazon already collecting sales tax; 2) Amazon has negotiated deals to delay the collection of sales tax; 3) Amazon does not collect state sales tax; 4) states that have no state sales tax (when visiting Glacier Natl Park years ago, I bought a t-shirt at the airport, and was pleasantly surprised that to learn that Montana had no state sales tax!):

    http://www.politico.com/news/stories/0512/75803.html

    Texas falls into category 2, and apparently the delay ends on July 1st. Amazon will start collecting state sales tax for Nevada in 2014.

    I was wondering how others felt about this. Texas has no state income tax, but makes up for it with a 8.25% sales tax (state and local). I buy heavily online, and Amazon is one seller I use frequently.

    One question: what about Amazon resellers who are 1) not located in Texas; and 2) fulfill their own orders. I assume these sellers and items won't be taxed, so it would seem that overall, this agreement will hurt Amazon's sales and drive more consumers to purchase from out-of-state resellers who fulfill their own orders. Or will it be different?

    As a Texas resident, all Amazon purchases will soon have 8.25% tacked on, and often I notice that Amazon's prices on some items are roughly on par with Amazon resellers. I guess the second stage in "comparative shopping" will be to compare shipping costs (Amazon is free if > $25.00) versus what Amazon resellers charge. After all, it's the final price that counts.

    Whatever the case may be, shopping on the Internet, be it Amazon or elsewhere, presents a far greater variety of goods and services that can be had locally.

    I have no intention of this thread being political per se, so let's not take it in that direction.:)
     
  2. Myke

    Myke Trying Not To Spook The Horse

    There's also the Prime Membership shipping option also. $79.00 per year, for unlimited free two-day shipping, and reduced one-day shipping prices.

    Tennessee has negotiated to delay collection here, but asks that we pay voluntarily on an honor basis.
     
  3. SamS

    SamS Forum Legend

    Location:
    Texas
    This has been discussed around here previously. I've been zapping a few purchases off my Wish List every few days for the past month, in anticipation of this. Effectively, a hike of 8.25% on each of their products. Not happy here.

    I wonder if they'll tax my $79/year Prime fee, as well?
     
  4. Myke

    Myke Trying Not To Spook The Horse

    I would expect so. 9.25% here. :agree:
     
  5. townsend

    townsend Senior Member Thread Starter

    Location:
    Ridgway, CO
    Sam, you live in Dallas, correct? Well, I live in Plano. Yeah, between now and Saturday, I'm going to thin out my wish list as well.

    This makes Amazon prime account less attractive, doesn't it? If you buy lots of merchandise, it will cover the $79 yearly shipping fee, but with the 8.25% sales tax tacked on, it certainly makes future purchases from Amazon.com less competitive.
     
  6. CaptBeyond

    CaptBeyond Well-Known Member

    Location:
    Above the Ozone
    Leave it to the killjoys to systemimatically take all the fun out of shopping online.
     
  7. Ham Sandwich

    Ham Sandwich Senior Member

    Location:
    Sherwood, OR, USA
    Oregon is an awesome place. No sales tax. :)
    Y'all should come visit. Spend your money here.
     
  8. Michael

    Michael I LOVE WIDE S-T-E-R-E-O!

    that sure is a wrench in the gears of internet savings...the reach is mighty.
     
  9. Michael

    Michael I LOVE WIDE S-T-E-R-E-O!

    did not know that...now that's the way to do it! :righton:
     
  10. SamS

    SamS Forum Legend

    Location:
    Texas
    Yes, exactly. I could easily justify Prime, because that covered the delta in sales tax in what I spend in one year via Amazon. Now, it's not as appealing to me. Not much use in "fighting City Hall", as they say. But I will definitely be more selective in my shopping now, where as Amazon use to be my first stop.

    8.25% isn't enough to complain about you're talking about a $10 purchase, but when I'm looking at things that are a few hundred dollars, it can really add up. What really irks me is that it ships from out of state. If they're going to charge me Texas sales tax, it should at least come from a Texas warehouse, thereby allowing me to get it next-day.
     
  11. vinyldreams

    vinyldreams Forum Resident

    Location:
    Main St.
    Never knew why Amazon and other online stores should be exempt from collecting sales tax in the first place. Gives them an unfair advantage over B&M stores imo.
     
  12. bubba-ho-tep

    bubba-ho-tep Resident Ne'er-Do-Well

    Location:
    San Tan Valley, AZ
    I guess I need to get those Beatles Capitol boxes I've been putting off before Saturday. :(
     
  13. Rose River Bear

    Rose River Bear Senior Member

    How quick we forget the "use tax" in almost every state.
     
  14. townsend

    townsend Senior Member Thread Starter

    Location:
    Ridgway, CO
    According to the article linked in my initial post:

    "Amazon itself has held that a 1992 Supreme Court decision affirmed that — save for an act of Congress — retailers with no physical retail location in a state, or nexus, cannot be compelled to collect sales tax."

    Read more: http://www.politico.com/news/stories/0512/75803_Page2.html#ixzz1yqLbyGwm
     
  15. Michael

    Michael I LOVE WIDE S-T-E-R-E-O!

    yes before the whammy! you'll love them...they are fabulous!:wave:
     
  16. lv70smusic

    lv70smusic Senior Member

    Location:
    San Francisco, CA
    I had previously assumed that Amazon would collect sales taxes on orders from Marketplace sellers if those orders were being shipped to addresses in states for which Amazon collects sales tax. Does anyone here have any first-hand experience otherwise? In other words, if you live in Washington state or New York, have your Marketplace purchases had sales tax included?
     
  17. Roland Stone

    Roland Stone Offending Member

    No, sales tax is not factored into intra-state third-party purchases. Or it has not been, anyway.
     
  18. kwadguy

    kwadguy Senior Member

    Location:
    Cambridge, MA
    Best line in that Politico piece is this:

    Right. If you exclude consumers and online retailers from everyone, it will benefit "everyone".
     
  19. bholz

    bholz Forum Resident

    Location:
    USA
    So long as you dont live in PA. We've had a law on the books for some time that we must pay PA sales tax on anything (excluding items like food and clothing) whether purchased the state or not. A law that had been mostly ignored until thie year. This past year they added a form to the state income tax so you could pay what you owe on all of your internet purchases. If you filed online you could not complete your tax form without filling it out. Clearly aimed at Amazon (wording seems pretty targeted) as they have distributuin centers here.
     
  20. What was even nicer was when I bought my car in WA state and I didn't have to pay WA sales taxes as an OR resident. They had to deliver the car to me in OR though. :)
     
  21. Michael

    Michael I LOVE WIDE S-T-E-R-E-O!

    they keep charging it and we keep paying it...was that the way it was supposed be? I'm feeling taxed out these days...
    it was nice buying things online at some places tax free...soon all will be lost.:(
     
  22. agentalbert

    agentalbert Senior Member

    Location:
    San Antonio, TX
    This sucks. I'll be doing less shopping at Amazon and more at other places, like importcds.com I guess.
     
  23. Michael

    Michael I LOVE WIDE S-T-E-R-E-O!

    Indeed...we just have to go with what works best! NO TAXATION on esales!
     
  24. colinu

    colinu I'm not lazy, I'm energy saving!

    I fail to understand what the fuss about paying a little tax. Taxes (when spent responsibly) pay for roads, schools, etc.
     
  25. Jimi Bat

    Jimi Bat Forum Resident

    Location:
    tx usa
    i dont mind paying sales tax or shipping but i dislike having to pay both.
     
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