The Amazon Tax (Oakland: sales, mortgage, how much)

[jbunniii]

In California, elsewhere, efforts intensify to close online sales tax loophole

http://www.mercurynews.com/top-stories/ci_15507730

"It's no longer a thing of us wanting to do it for budgetary purposes," state Assemblywoman Nancy Skinner, D-Oakland, said at a recent budget hearing, referring to her proposal to step up the state's collection efforts. "It's our own businesses and largest employers asking for it, because they're being put at a competitive disadvantage."

Notice that the solution is NEVER to lower taxes in California, but instead to close "loopholes" (i.e., add new taxes).

[EscapeCalifornia]

The blob will continue to expand until there's nothing left to tax.

But even with sales tax, Amazon is usually still cheaper than retail.

[hoffdano]

California is continuously driving demand for purchases via Amazon (and others) by pushing sales taxes up. Aren't sales taxes in the 9% range now in most areas?

California residents who want to save money will go where goods are cheaper.

[jbunniii]

Originally Posted by hoffdano

California is continuously driving demand for purchases via Amazon (and others) by pushing sales taxes up. Aren't sales taxes in the 9% range now in most areas?

California residents who want to save money will go where goods are cheaper.

It's already pretty sobering to calculate just how much money one can save in state income and sales taxes by moving to a state that has neither. For me, the number is close to $20k per year, enough to pay the mortgage on a small house, or to buy a car every single year. Add a tax on online purchases and the disparity becomes even greater.

[Curmudgeon]

When Califrornia starts taxing you on the air you breathe be sure they discount the pollens and polutants!

[Ultrarunner]

Originally Posted by hoffdano

California is continuously driving demand for purchases via Amazon (and others) by pushing sales taxes up. Aren't sales taxes in the 9% range now in most areas?

California residents who want to save money will go where goods are cheaper.

10% and higher already exists in CA... all depends on where you live... notice, I didn't say where you buy.

A friend traveled to get a good deal on his Honda and still had to pay sales tax rate where he lived and not the county where he made the purchase.

[Ceece]

I noticed they asked for information on my online purchases when doing my taxes last year.

[jbunniii]

Originally Posted by Ceece

I noticed they asked for information on my online purchases when doing my taxes last year.

Yes, it's a ridiculous situation that the state has put its residents in. Every year we have two choices:

1) Knowingly commit tax fraud by failing to declare online purchases

2) Spend many hours calculating what is owed, declare it, pay the bill, and feel like a total sap because 99.99% of other Californians chose option 1) and got away with it.

I am strongly of the opinion that if California insists upon making us pay sales taxes on online purchases, it should damned well automate the process by collecting at point of sale, instead of shouldering us with the bookkeeping hassle and the dilemma described above.

[EscapeCalifornia]

Originally Posted by jbunniii

I am strongly of the opinion that if California insists upon making us pay sales taxes on online purchases, it should damned well automate the process by collecting at point of sale, instead of shouldering us with the bookkeeping hassle and the dilemma described above.

That creates a huge burden on the vendor though. Imagine being a small online vendor in some other state selling online and trying to comply with 50,000,000 different tax rates and jurisdictions throughout the country. They'd spend more time filing tax returns than running their business.

[SickOfCalifornia]

This will only force the Amazon vendors to move out of state, either physically or virtually. It's already happened in other states. The vendors either shut down or register in Delaware, et.al. The net result is less revenue, not more. It's sad that California's idea of a fix is to make it harder for small businesses to operate. I'm in ecommerce and get a large percentage of my income from Amazon sales. If I wasn't already moving, this alone would make me pack up. Way to go California!! You are just one step closer to bankruptcy with this ridiculousness.