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Fri Apr 27, 2012, 09:31 PM

Sales-tax deal with Texas is Amazon's latest

Source: Reuters

Amazon.com agreed to begin collecting sales tax in Texas on Friday, forging a deal that promises to bring more jobs to the southern U.S. state and as the online marketer lost another round in a series of state-by-state sales tax battles.

The agreement, to take effect on July 1 for Texas' 6.25-percent sales tax, follows another accord reached with Nevada earlier in the week to begin collecting that state's 8.1 percent sales tax on Jan. 1, 2014.

Amazon rings up an estimated 20 percent of all U.S. online retail sales, making it the country's largest online retailer.

Most online purchases are free of sales tax, which has given the company an edge over traditional, bricks-and-mortar retailers that do collect sales tax.

Read more: http://www.reuters.com/article/2012/04/27/amazon-tax-sales-idUSL2E8FREMY20120427

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Arrow 4 replies Author Time Post
Reply Sales-tax deal with Texas is Amazon's latest (Original post)
alp227 Apr 2012 OP
They_Live Apr 2012 #1
naaman fletcher Apr 2012 #3
customerserviceguy Apr 2012 #2
Bucky Apr 2012 #4

Response to alp227 (Original post)

Sat Apr 28, 2012, 10:13 AM

1. law applies to amazon

but not to hundreds of other websites. I don't understand how this is legal. When it kicks in, you will see customers leaving amazon for lesser known sites. In fact, it wouldn't surprise me if amazon creates it own lesser known site (legally unaffiliated with Amazon, of course).

That last part I wrote is so underhanded, that might be able to find a corporate consultant job in this economy yet. I'm learning well from terrible examples.

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Response to They_Live (Reply #1)

Sat Apr 28, 2012, 02:53 PM

3. The history of it

 

has to do with the constitution and the prohibition of states from regulating interstate commerce. Prior to the rise of the internet, it was ok to ship stuff and not charge tax unless you had a "nexus" in that state.

So for example, when Dell first started out, it only collected sales tax in Texas. 5 years ago when I bought my last dell computer and I was living in Oklahoma, I had to pay sales tax because Dell had a large call center operation in Oklahoma and hence a "nexus" there.

These rules were constant for decades... they are being fought over now as the internet is transforming the economy.

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Response to alp227 (Original post)

Sat Apr 28, 2012, 01:05 PM

2. For awhile

Internet sales needed the exemption from sales tax to be economically competitive with brick-and-mortar stores. I don't think that's the case anymore.

Last month, I bought an HDMI cable from Amazon for $2.47 delivered. Add sales tax to that, and it was still less than a quarter of the price that I could have picked it up for at the local Target. Some things just can't be bought in "real" stores anymore, you have to go to the Internet to find them, like parts to repair things.

I've been against the states taxing Internet sales, but maybe the time has come to rethink that. It certainly would produce a revenue stream that the states badly need.

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Response to alp227 (Original post)

Sat Apr 28, 2012, 02:58 PM

4. This doesn't bother. I used to be opposed to it, but it seems reasonable now.

Am I selling out?

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