Rick Perry signs bill requiring Amazon to collect sales taxes - just like California (borders, companies)

[andrea3821]

Originally Posted by AnUnidentifiedMale

Yes, I realize that entirely, but that's not the issue. The issue is that Amazon's business model is based on tax evasion. They have a physical presence in California because their Kindle product is manufactured there, and they have a distribution center in Texas, so in both cases, they are required to collect sales taxes, but are refusing to do so.

Another problem is that they are making it more difficult for local businesses to stay in business. If Amazon ends up winning this battle, I would like to see Texas and California eliminate their sales taxes entirely so that local businesses can at least compete with Amazon. The states can then raise their income and/or property taxes to make up the difference.

"Based on tax evasion"? lolz

Distribution center means nothing as far as tax. That is not where they are doing business. I can see CA moreso than TX but really, just b/c you have a manufacturing plant somewhere, for a product that is not even your main revenue generator (far from it, actually), does not mean you are doing business there.

Your headquarters and any outlets/retail centers WHERE SALES ARE MADE are places where you have to collect sales tax. Like if I were to start an online business, I would be required to collect sales tax from people who make purchases within WI...but nowhere else.

Amazon is a different beast altogether, IMO. Nowhere near as harmful to small businesses as Walmart, etc., so your second paragraph is seriously stretching it.

You also need to note that Amazon itself does not sell most items, they are just an intermediary. Many of the vendors are actually small mom and pop type stores. Others just use Amazon for fulfillment.

[andrea3821]

Originally Posted by ozzie679

Good on him! A win for mom and pop retailers!

Amazon is already a win for mom and pops:

Amazon.com : Make Money with Amazon



Research, good.

[andrea3821]

Originally Posted by sol11

So it's OK to order something from Walmart online that has to be shipped from out of state and pay no sales tax in Texas?

There's a disconnect there somewhere..........

Walmart has a physical presence in every state. If you are shopping online at Walmart, you are paying sales tax still.

[sol11]

Originally Posted by andrea3821

Walmart has a physical presence in every state. If you are shopping online at Walmart, you are paying sales tax still.

Amazon had a "physical presence" in Texas as well,....hence the State Comptroller billed them for $250 million plus in taxes owed. A distribution center IS a physical presence.

Additionally, Amazon offered to build a multi-million dollar distribution center and employee several thousand IF Amazon could have a 4+ year agreement NOT to collect sales taxes. Amazon only collects sales taxes,..so it essentially cost it NOTHING. Why all the fuss, ...unless it wants only a market edge over brick and mortar stores?

[BentBow]

Originally Posted by wehotex

Why should Perry ever stand up for the consumer? It's par for the course for that prissy scumbag. Walmart must have lobbied him pretty hard. The consumer loses again.

Actually small businesses within the state of Texas lobbied for it, because Amazon was in unfair competition with local retailers, that have to pay the tax.

[pommysmommy]

Originally Posted by sol11

So it's OK to order something from Walmart online that has to be shipped from out of state and pay no sales tax in Texas?

There's a disconnect there somewhere..........

Amazon.com is not a brick and mortar store.

[wehotex]

Originally Posted by AnUnidentifiedMale

Yes, I realize that entirely, but that's not the issue. The issue is that Amazon's business model is based on tax evasion. They have a physical presence in California because their Kindle product is manufactured there, and they have a distribution center in Texas, so in both cases, they are required to collect sales taxes, but are refusing to do so.

Another problem is that they are making it more difficult for local businesses to stay in business. If Amazon ends up winning this battle, I would like to see Texas and California eliminate their sales taxes entirely so that local businesses can at least compete with Amazon. The states can then raise their income and/or property taxes to make up the difference.

Are you sure that Amazon is required to collect the sales taxes? I always read that it is the buyer's responsibility to pay taxes owed, but few seldom do.

[ozzie679]

Originally Posted by wehotex

Are you sure that Amazon is required to collect the sales taxes? I always read that it is the buyer's responsibility to pay taxes owed, but few seldom do.

State sales tax is paid to the retailer by the consumer. It is the responsibility of the retailer to pay every penny of the the collected sales tax to the state treasury. In some states, the money comes out of the retailers bank account through a monthly automatic electronic transfer to the state.

[Memphis1979]

Its his state, but I think that the internet should be tax free. Of course that lowers the number of people needed to work, less selling in stores, etc.

It should lower prices though, with more competition it lowers costs.

[wehotex]

Originally Posted by ozzie679

State sales tax is paid to the retailer by the consumer. It is the responsibility of the retailer to pay every penny of the the collected sales tax to the state treasury. In some states, the money comes out of the retailers bank account through a monthly automatic electronic transfer to the state.

but not for online retailers or TV retailers like Amazon. Read sanrene's post.
Remember Tv commercials that would tell ppl, "fill in your state" residents please add sales Taxes. Ppl that order from other states are "supposed" to pay sales taxes to their states, but how many actually do?