California Internet Sales Tax Law - read this before you move there! (unemployment, to buy)

[NewToCA]

Originally Posted by user_id

When people from Phoenix post articles from right-wing propaganda sites....yes it is.

The publication clearly has a right wing orientation, however the author of this particular article is a PhD and teaches at a California college.

So, he isn't someone who has no background in the area, and can critically discuss the topic.

[Reason42]

Originally Posted by .highnlite

Which must be the reason why more new start up companies are formed in California every year than in any other state

Per capita?


I actually ask in honest interest b/c I can not find "the data" (not just blog posts) to support your assertion.

[.highnlite]

This may be considered a blog, but the reach for the data is contained in it.

Is California still the startup capital of the U.S.? | California Watch

[CAVA1990]

Originally Posted by .highnlite

Which must be the reason why more new start up companies are formed in California every year than in any other state

How many of those "start ups companies" are consultants (aka laid off white collar workers)?

[Everest209]

I heard about that new law, like taxing you for stuff that you buy on amazon. So let me get this straight, not having to pay for sales tax on amazon, but having to pay shipping cancels itself out in my eyes. Now California wants us to pay shipping and sales tax? I don't get too mad at the political crap, but this one did catch my attention, bs.

[.highnlite]

Originally Posted by cava1990

how many of those "start ups companies" are consultants (aka laid off white collar workers)?

32

[Vascodagama]

Looks like old Jerry Brown and his crony liberal legislators are on a roll with passing bill after bill that is bad for California business and consumer confidence. At this rate the state economy will collapse before the next gubernatorial election. Jerry must be taking lessons from Obama.

Our politicians are idiots

[drshang]

This was the most obviously stupid law passed in a long time. Amazon was kind even to tell CA IN ADVANCE of passing this law they would stop doing business with all the affiliates and not collect sales tax on CA purchases. So not only does Amazon STILL not collect sales tax, CA loses all the income tax, sales tax and economic buying power of former Amazon affiliates.

Furthermore they actually marked money in the budget from Amazon collecting sales tax, despite them telling CA they would not collect it. Just LOL.

[user_id]

Originally Posted by Everest209

Now California wants us to pay shipping and sales tax? I don't get too mad at the political crap, but this one did catch my attention, bs.

Now? California, like other states, has required people to pay sales tax on out-of-state internet purchases since the internet has been around. Its called "use tax"....the problem is that few pay it.

Anyhow, tax-free internet transactions aren't going to last, within the next few years online businesses will be charging sales tax for anybody that is in a state with sales tax.

[ColoNative]

Originally Posted by .highnlite

32

lol and how many of those start up companies will fail in the first year?

Before you answer highnlite, let me guess, 49?

As for the original post, California is not the only state to have a Sales Use Tax. This has actually been in affect in many states for a long time, they just never enforced it. It also isn't only for internet purchases, it's for all purchases made out of state to be used within the state of residence. It's typically a tax that they have been trying to get residents to be honest about since 2007 (have an old tax return? look for the space to add in your out-of-state purchases). "California Use Tax law became effective on July 1, 1935. Section 6201 of the Revenue and Taxation Code established the use tax to eliminate the price disadvantage of California businesses when California consumers purchase taxable merchandise from out-of-state retailers."

As For AZ; "The purpose of a use tax is to prevent the avoidance of sales tax made possible by purchasing tangible property from out-of-state vendors. Such purchasing habits put in-state vendors at a disadvantage and leads to loss of revenue for the state. Arizona's use tax was enacted in 1955 to "protect sellers in the state of Arizona from inequities that would result without a use tax.""

The above quote is from the Financial Services Office at the University of Arizona. Here's a link to the page (http://www.fso.arizona.edu/tax/AZ_Sales_and_%20Use_Tax_Facts.pdf - broken link).

So, the issue isn't a democrat/republican one, California just decided to be a bit more proactive in it's pursuit of what has been rightfully its by law since 1935. The Governor of CA in 1935 was Republican, I don't know about the Representatives or Congressman, but CA was a fairly conservative state back then.