Son of Liberty
I just got wind of this. Heh,
HOWEVER! This isnt anything new;
So if you were an Amazon store here in California.... looks like you're out of a Job.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.
HOWEVER! This isnt anything new;
Some details on the law: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
And it goes both Ways.... Amazon wont have it, but those in favor of the bill say its due;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.
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.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