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Amazon pulls out of California

icegoat63

Son of Liberty
V.I.P.
I just got wind of this. Heh,

Amazon.com dropped about 10,000 California-based associate sales partners late Wednesday so that it would not be forced to collect California state sales tax on purchases made through them. The tax is new and was signed by Gov. Jerry Brown on Wednesday as part of a plan to close a gap in the 2011-12 budget.

As passed, the law requires large out-of-state retailers to collect sales taxes on purchases that California customers make on the Internet. Those taxes were lowered by 1 percentage point to ease the implementation.
So if you were an Amazon store here in California.... looks like you're out of a Job.

HOWEVER! This isnt anything new;

Connecticut, Illinois, New York, North Carolina, Arkansas and Rhode Island have all passed similar laws requiring Internet retailers to collect sales tax -- sometimes called an "Amazon tax" -- and Amazon responded by dropping its associate partners in those states, CNN Money reported.

Only in New York state, which also passed a similar measure, has Amazon not dropped its associates; there, it has challenged the law in court.

"It's odd that a company would voluntarily dilute its business in the most populous state in the country simply because it's being asked to collect what is lawfully owed," Mark Hedlund, a spokesman for California Senate President Pro Tem Darrell Steinberg, told CNN Money.

Source (last two Quote boxes)http://latimesblogs.latimes.com/jac...ornia-associates-to-avoid-state-sales-tax.htm
Some details on the law:

Shopping at Amazon.com Inc. and other major Internet stores is poised to get more expensive.

Beginning Friday, a new state law will require large out-of-state retailers to collect sales taxes on purchases that their California customers make on the Internet — a prospect eased only slightly by a 1-percentage-point drop in the tax that also takes effect at the same time.

"We oppose this bill because it is unconstitutional and counterproductive," Amazon wrote its California business partners Wednesday. Amazon has not indicated what further actions it might take to challenge the California law.
And it goes both Ways.... Amazon wont have it, but those in favor of the bill say its due;

The larger bite from buyers' pocketbooks will be eased only a bit because California's basic sales tax rate also will drop to 7.75% on Friday when a 2-year-old temporary increase expires. The basic rate in the city of Los Angeles falls back to 8.75%.

Brown's signature on the budget bills is aimed at closing a loophole that freed Amazon and other out-of-state retailers from collecting sales taxes for California.

Not collecting sales taxes gave Internet retailers a competitive price advantage over California's small businesses such as independent booksellers and big-box retailers with a presence in the state, including Barnes & Noble Inc., Wal-Mart Stores Inc., Best Buy Co. and Target Corp.

"You can't give one segment of retail a 10% discount every day. It's just not fair," said Bill Dombrowski, president of the California Retailers Assn., a major player in a coalition of large and small stores supporting the legislation.

Internet sales tax: Online retailers to start collecting sales taxes in California - latimes.com
Sooooo Good or Bad? California just pushed a huge chunk of the Online market out of its State by Assigning Taxes to Sales made on it. What do you think? Whos out of line here? Amazon.... or the California Law Makers.
 
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MenInTights

not a plastic bag
In South Carolina, we did the complete opposite: link

We guaranteed Amazon a 5 year break on internet sales tax in exchange for a distribution center that will employ 2000+ people. I understand the call for Amazon to collect taxes online and I understand the local retailers sense that its unfair. Those points are valid. But in today's world, its all about jobs. 2000+ good paying jobs plus the construction jobs plus the support jobs is massive for a state like SC.

I hate to break it to you, but you guys in CA, NC, NY and other states can pass internet sales tax laws just know that we in SC will bend over backwards for Amazon. We will make Amazon a SC company. Even though I do sympathize with the local retailers and the legislators trying to bridge the gaps its all about jobs.
 
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icegoat63

Son of Liberty
V.I.P.
Well thats the thing Ive Voted against this kind of thing every time it comes up.

I personally feel that Amazon has gone above and beyond their duty as a company to even allow these Entrepreneurial Stores to open using their namesake. I totally agree with you, where I stand I've ALWAYS valued a Construction project that employes hundreds of individuals for 5-6 months (or longer pending the size) and then the overall Employment opportunities made available from the structure and its Tenant than I have ever valued a tax, which by the way feels more of a Punishment than anything.

I dont feel bad for losing Amazon, I feel they've made the right decision by pulling out and standing up for what they believe in as a Company. Amazon has made itself into one of the largest online retailers for a reason, not many Companies around can have the likes of Big Box stores like Walmart, Target, and Barnes & Noble shaking in their jockies.

We have to evolve, and this Tax tax tax is going to kill a State Economy. Already California and I'm sure a Bevy of the other States on that list of Non-Amazon places are already recognized as some of the Worst States to contain a Business License in. That alone should be a big enough message, when such a large portion of the Businesses that cater to your state dont even want to obtain a license there because of the Punishments you inflict... pfft.
 

Tucker

Lion Rampant
Ha, that's funny. I never noticed that I wasn't paying tax on the things I bought online.
So if you were an Amazon store here in California.... looks like you're out of a Job.
I think it's the other way round, Ice. 'Associate sales partner' just means that you have an Amazon ad on your homepage. I just read a comment from one person who said that he has two of those accounts and hasn't received a dime from Amazon in two years. Dropping ten thousand sounds like something big but means very little. This law is a bonanza for actual brick-and-mortar stores; they're going to be seeing that former web traffic. They were getting ripped off before, were they not?

Pay tax on the 'Net for the same thing you'd pay tax on in a store? Fair. Get people out of their dens and into the malls? Smart. Good plan, Governor. Glad I voted for you again.
 

icegoat63

Son of Liberty
V.I.P.
ssshhhhh you're killin my thread traffic dernit! Connecticut, Illinois, New York, North Carolina, Arkansas and Rhode Island all passed the same laws and they're still around so you have to recognize its a thread of much ado about nothing :hah:


Although I guess the argument can still go on that how can California charge a Sales tax on something that wasn't "Sold" in California per se? That whole Online limbo plays an interesting role in the Domicile State dealio.
 

MenInTights

not a plastic bag
The problem is Amazon thinks they are king of the hill and if you don't play exactly like they want you to, they will pick up their ball and go play somewhere else. Amazon had a distribution center in TX and when TX sent them a bill, they packed up and left: Amazon.com Plans to Leave Texas Because of Taxes - Bloomberg

Some will say that's a crappy way to do business and that's fair to say. But when your unemployment rate is 12%(SC), you are at their mercy. What are you going to do?
 

Tucker

Lion Rampant
Although I guess the argument can still go on that how can California charge a Sales tax on something that wasn't "Sold" in California per se? That whole Online limbo plays an interesting role in the Domicile State dealio.
That's a point. Maybe Gov. Brown can change the name from 'sales tax' to 'purchase tax.' :lol:
 

icegoat63

Son of Liberty
V.I.P.
That's a point. Maybe Gov. Brown can change the name from 'sales tax' to 'purchase tax.' :lol:
in which case your now taxing the Purchaser rather than the Seller. Seriously not out of the scope of taxes I'd expect from California Law Makers :hah:
 

Mirage

Secret Agent
Staff member
V.I.P.
Colorado got hit with this a while back. Amazon cancelled my affiliate store with them and I can no longer make any money by referring traffic to them. I only hope Amazon's boycotting of various states leads to laws being changed.
 

Unity

Living in Ikoria
Staff member
Colorado got hit with this a while back. Amazon cancelled my affiliate store with them and I can no longer make any money by referring traffic to them. I only hope Amazon's boycotting of various states leads to laws being changed.
I'm not second-guessing Amazon's importance as a big company, but I really think that one corporation's boycott wouldn't have an influence on law. More than one company with more jobs at risk could maybe do that, but Amazon is still different than losing Wal-Marts, etc.
 
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