Tax on Amazon purchases (Houston, Dallas: 2014, credit, purchasing)

[lhafer]

Originally Posted by MIBS98

I agree with houstonfan. There are ongoing discussions in Congress about completely closing this loophole and forcing all online companies to collect state tax. It is an unfair competitive advantage and hurts local companies. Amazon was initially against it but became the first big online company to come out in favor of Congress changing the law to force retailers to collect sales tax based on the state of purchase.

I'm all for supporting my local businesses on most things. And I'm all for paying my share of taxes.

What pisses me off is that they continue to reem people with taxes and then the govt fails to use that money appropriately. As someone who paid more than a teacher's entire yearly salary last year just in taxes, it does hurt to continue to pay taxes, and I tried to get some relief by buying a lot with Amazon - speicifcally because it was tax free and shipped to me very quickly. I'm for my paying my fair share as long as the govt allocates the funds properly.

[houstonfan]

Originally Posted by lhafer

I'm all for supporting my local businesses on most things. And I'm all for paying my share of taxes.

What pisses me off is that they continue to reem people with taxes and then the govt fails to use that money appropriately. As someone who paid more than a teacher's entire yearly salary last year just in taxes, it does hurt to continue to pay taxes, and I tried to get some relief by buying a lot with Amazon - speicifcally because it was tax free and shipped to me very quickly. I'm for my paying my fair share as long as the govt allocates the funds properly.

I know, I feel exactly the same way about taxation, "kiss my money away!" In this case, the only silver lining is that I'm giving local stores a better chance, so i'm ok with it. (However, all the business owners that depend on supplies from amazon, will have to pass some of the cost along to their customers, which might hurt their business). It's never fair when it comes to $$.

[14Bricks]

Sooner or later the states are going to force all these e-businesses to start paying sales taxes.

[14Bricks]

Originally Posted by houstonfan

Just out of curiosity, how many of you poster who complain about this are also ones who demand all business loopholes be closed for businesses and 'rich' people? Just playing devils advocate.
I'm sorry to see this loophold closed too. However, I think it will help the small stores of TX bc it gave amazon an unfair advantage. I know I try to buy online to save myself the tax all the time! I think Amazon is only the first, and soon other online businesses will be forced to do the same.

I'm pretty sure there are a few "rich don't enough in taxes" on here, and now they're complaining because the tax man has cometh for amazon, and he'll be coming for the rest of the online business. Too much money to be made.

[MIBS98]

Originally Posted by lhafer

I'm all for supporting my local businesses on most things. And I'm all for paying my share of taxes.

What pisses me off is that they continue to reem people with taxes and then the govt fails to use that money appropriately. As someone who paid more than a teacher's entire yearly salary last year just in taxes, it does hurt to continue to pay taxes, and I tried to get some relief by buying a lot with Amazon - speicifcally because it was tax free and shipped to me very quickly. I'm for my paying my fair share as long as the govt allocates the funds properly.

Remove the ability of online companies to compete simply on the basis of no sales tax (plus on the laziness of the average person) and what happens? One of three things:

1) They have to compete on the basis of price, so the added tax you pay is offset a bit by reduced prices.

2) They don't reduce prices and more money is funneled into the local economy which, frankly, is good for the local economy.

3) People don't change their behavior because it is easy to buy online, more tax revenue flows into the coffers and maybe (maybe not) school budgets don't get cut, etc.

I don't know how much sales tax revenue is lost for the state of Texas through online retailing, but I'd guess it is a lot.

[houstonfan]

Originally Posted by MIBS98

Remove the ability of online companies to compete simply on the basis of no sales tax (plus on the laziness of the average person) and what happens? One of three things:

1) They have to compete on the basis of price, so the added tax you pay is offset a bit by reduced prices.

2) They don't reduce prices and more money is funneled into the local economy which, frankly, is good for the local economy.

3) People don't change their behavior because it is easy to buy online, more tax revenue flows into the coffers and maybe (maybe not) school budgets don't get cut, etc.

I don't know how much sales tax revenue is lost for the state of Texas through online retailing, but I'd guess it is a lot.

1.) I'm not a CPA, but if amazon collects tax, don't they hae to pass that tax to the gov, so not likely they will reduce their prices? Their prices were usually a tad lower than the pretax store prices anyway, just because often there's more than one company that offers the same product on amazon so they compete.

2.) and 3.) I think that's what Ihafer and my concerns are. I'm in support of this if the tax collected goes to good use. However, often it gets wasted on frivolous spending and nothing good will come of it. Take for example, the revenue generated from lottery of texas.

[LostInHouston]

Originally Posted by 14Bricks

I'm pretty sure there are a few "rich don't enough in taxes" on here, and now they're complaining because the tax man has cometh for amazon, and he'll be coming for the rest of the online business. Too much money to be made.

Except sales tax without a state income tax is essentially a flat tax system, which benefits the wealthy. So you can still complain that the rich aren't paying enough in taxes and be unhappy about amazon adding in state sales tax.

[piyf]

Bout time the local government wakes up. Now time for every state to start charging on all online purchases.

[elnina]

Originally Posted by HelloWorldItsMe

I know this is a Texas post..but saw it was about Amazon and tax...just got an email the other day from Amazon..about paying taxes on past purchases. Hadn't bought from them before this past Christmas...guess that was the first..and last.

As part of an agreement reached with Texas Comptroller Susan Combs, Texas will no longer try to collect back taxes from Amazon.

Amazon to Begin Collecting Sales Taxes in Texas: Report | Fox Business

Originally Posted by jasonamd

The law has been this way for a long time. If a company has a location in the state, they must collect sales tax. Amazon built a facility in Texas, so now they need to collect sales tax.

In Texas, Amazon actually closed a distribution center in 2011 after the state claimed the company owed $269 million in uncollected sales tax.


Interesting: a trial judge in Illinois surprised a lot of people by ruling that a new state law requiring the e-tailer to collect sales tax because of the presence of Illinois affiliates violates the Commerce Clause of the U.S. Constitution.

Amazon To Start Collecting Sales Tax In Texas - The Consumerist

[TFW46]

Amazon really didnt have any choice in the matter. I'll keep buying from Amazon (and using my Prime Membership), as it has such a great selection and absolutely the best Customer Service anywhere.