Internet sales tax?

[MrPopo]

The real issue with internet sales tax is that sales tax law in general is fucked up if you look into it, but for the most part you're insulated from it because you do most of your purchases local. There's all kinds of provisions related to residency vs. non-residency and other such things. And when you include online stuff it gets even more complicated. Should the tax rate be based on where a company is incorporated? Where the item ships from? What if there are warehouses across different states? The customer gets assessed a tax at purchase time which might be different from ship time.

[J T]

If they only made internet businesses apply sales tax if their home state had a sales tax, that would drive a lot of good business out of Washington state. Amazon and Valve are both here. As a WA resident, I've always had to pay online sales tax.

[MrPopo]

If they only made internet businesses apply sales tax if their home state had a sales tax, that would drive a lot of good business out of Washington state. Amazon and Valve are both here. As a WA resident, I've always had to pay online sales tax.

Home state gets confused when you deal with incorporation. Technically Amazon is based in Delaware for corporate tax reasons.

[Stark]

If they only made internet businesses apply sales tax if their home state had a sales tax, that would drive a lot of good business out of Washington state. Amazon and Valve are both here. As a WA resident, I've always had to pay online sales tax.

Home state gets confused when you deal with incorporation. Technically Amazon is based in Delaware for corporate tax reasons.

It seems like WA already does a lot to drive good business out of Washington state.

[equalsign]

I'm bumping this.

Amazon is going to start charging sales tax on Tennessee residents... and I'm mad.

Amazon being tax-free was my sole reason for going there. Go to any store in TN and try to buy a game at full retail price (say a $60 game). You'll be taxed about $5.

Saving five bucks may not sound like a lot but if you buy a lot of new releases it does add up to some significant savings. And I'm not even including amazon's frequent price drops on games...

Dang. I guess I'm done with amazon now. And some of you may be thinking "What's the big deal? It's just a small tax. You're overreacting."

No. Saving money is the reason I shop online. Thankfully, amazon isn't the only online shopping site.

Actually, Amazon is not at all tax free. No internet shopping sites are tax free (although I think there are some loopholes for digital purchases). You are supposed to tally up your online purchases at the end of the year and pay tax on them. It's called "use tax" (link). Every state I can think of has it, including Tennessee. I think less than 2% of tax payers actually report this though. That's why the government wants internet tax reform. Amazon doesn't like it because many people purchase from their site because they think there is "no tax." Admittedly, some consumers see this as a very easy and safe way to evade taxes.

Not on the government's side, just saying.

EDIT: Additional info for Tennessee straight from Amazon - (link).

[01toubib]

in michigan it's on the honor system practically (you're supposed to claim out of state purchases on your taxes)- I don't buy much online any more, but in the past i'd claim my stuff and just pay the 6%... i'd rather it go to my state than the feds anyway.

You're an honorable person, but not going to lie, the money going to the state is hopeless. Our state has so many issues.

Back to the original topic, yea this has been thrown around a lot. But amazon refuses to go with it unless ALL online retailers abide by this rule. Individual states have tried to get Amazon, and Amazon always finds a loop hole, including going as far as to threaten to fire all of the individual states employees.

Some of the top economists in the years ago did a study, in which they used ebay to understand how people bought online. They found (shockingly) in online shopping, the difference of someone from buying from one store to another is only $.01. Yes 1 cent. Even if the other store was better in feedback, advertisement quality, ect.

Amazon would be hurt badly if this passed and that's why they are fighting it so hard. (And other online retailers)

[disorderlyvision]

ALL taxation is theft.

[Erik_Twice]

ALL taxation is theft.

Not sure if joking or just stupid.

Also, get a centralized tax system you silly Americans =P

[MrPopo]

ALL taxation is theft.

Not sure if joking or just stupid.

Also, get a centralized tax system you silly Americans =P

We do have centralized taxes. We just also have local taxes because we have a system of united but independent states.

[Erik_Twice]

MrPopo don't take the bait!