Amazon fights California sales tax requirement

Amazon fights California sales tax requirement

www.latimes.com

Amazon seeks to avoid collecting sales taxes from California consumers by cutting ties to affiliates in California who steer business to its site.
By Marc Lifsher and Andrea Chang, Los Angeles Times

July 1, 2011
Reporting from Sacramento and Los Angeles—
Saying it won't force California customers to pay sales tax on their Internet purchases, Amazon.com is severing ties with 10,000 small businesses and individuals here who funnel shoppers to the online bazaar through their websites.

The defiant action came hours after Gov. Jerry Brown signed legislation that would have required Amazon

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Good for Amazon!! Finally someone has what it takes to stand up to the govt.

I think Amazon has a legitimate case and a very good chance of winning. Why should people in other states have to help pay the debt of another specific state that they do not occupy?

With the economy where it is, I understand that California needs help with their debt, but so do the other 49 states.

This is most likely only the beginning. Although we seemed to have dodged the bullet this time, who knows what the next price will likely be?

Nevertheless very interesting. Will be interesting to watch and see where this goes.

Thanks for your time,
Pax

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reply to post by paxnatus


I love it.

California is a perfect example of what the rest of the country will look like if Obma is re-elected.

Keep it up, Brown!

Texas is in a fight with Amazon as well. Amazon is looking for a deal.

Amazon’s CEO Jeff Bezos has said that it is protected in the U.S. constitution’s prohibition of state’s interference in interstate commerce -

And in the U.S., the Constitution prohibits states from interfering in interstate commerce. And there was a Supreme Court case decades ago that clarified that businesses — it was mail-order at that time because the Internet did not exist — that mail-order companies could not be required to collect sales tax in states where they didn’t have what’s called “nexus.”

www.webpronews.com...

AFAIK, California is the third state to try to tax Amazon purchases.
In addition to Texas, Illinois is also involved.


marketplace.publicradio.org...
chicago.cbslocal.com...

If the states keep this up, Amazon will have quite the fight on their hands.
I will be rooting for Amazon

And, here we have Sears trying to cash in on the affiliates loss
articles.chicagotribune.com...

reply to post by paxnatus


I knew it! I figured California was going to be one of the next ones to pull this.

As much as I can appreciate what Amazon is doing, I feel absolutely horrible for all the affiliates! A lot of people have been making a living by being Amazon affiliates, and now that opportunity is being taken away from people... state by state.

Thanks for the post OPie.

reply to post by paxnatus


Residents of other states wouldn't be paying the tax...Just the people that live in California...Like every other thing they buy or bring into the state.

Amazon.com is severing ties with 10,000 small businesses and individuals here who funnel shoppers to the online bazaar through their websites

This new legislation to glean taxes from Amazon ultimately hurts CA and it's taxpayers more than it helps. Apparently CA passes legislation without even carefully thinking it through or accessing the consequences.

Now CA has just lost a considerable source of tax revenue from Amazon affiliates in CA. And probably cost many of them their financial livelihood.

Amazon's entire competitive advantage is the tax free shopping incentive and they probably know this.

Besides sales tax revenue, I think this is an example of large discount retailers like Wallmart using some aggressive lobbying to go after Amazon and other tax exempt online retailers to level the playing field for them.