So they've got you over a barrel.
Or not. One thing for sure. The lawyers are going to make $$.http://news.cnet.com/8301-31921_3-20075651-281/california-targets-kindle-lab-in-amazon-tax-spat/
amazon may have to collect sales tax anyways.
The only problem for enthusiastic politicians and tax collectors is that the new law might not be entirely, well, legal.
In 1994, a California appeals court rejected state tax collectors' arguments when they tried a similar approach. The case involved a Colorado-based company, Current, which sold greeting cards, gift wrapping paper, and so on through the mail. It had no contacts with California.
Current's parent company, Deluxe Corp., did do business in California. The state Board of Equalization, operating under the theory that the finer points of corporate structure weren't that relevant, levied $344,088 in taxes on Current.
The appeals court tossed out that argument, saying that courts in Pennsylvania, Illinois, and Connecticut had considered similar cases and had all ruled against the tax collectors. Those decisions were "persuasive," a three-judge panel unanimously ruled, and Current and Deluxe "did not have integrated operations or management" and were "separate and distinct corporate entities."
Yet, when you get down to it, school taxes are no different than sales taxes. School districts all over the state are rife with wasteful spending...after all, it's tax dollars...not REAL money...
I'd love to see schools in California cut bi-lingual education classes, ESL classes, and Spanish-only classes except for those that are actually designed to teach Spanish, much like German, French, Italian, Russian, etc.
There's no reason the taxpayers should have to foot the bill for classes in multiple languages. Just teach them in English. Let the families foot the bill to teach their children English...especially the illegal immigrant families that make up such a large percentage of non-English speaking students. (for that matter, the children of illegal immigrants should not be in the public schools at all...)
Taxes, as unpleasant and unpopular as they may be, are necessary to fund the day-to-day operation of governments.
Where do you cut? Do you do away with the highway departments that build and maintain our roadways?
Do you do away with the police and fire departments?
Do you do away with the all-too numerous state, county, and city agencies that deal with the everyday issues that are just normal operations for the public entities?
It's easy to bitch about cutting spending for the poor...after all, they're...well, they're poor...no one really cares. They should just get jobs so they won't be so poor...right?
and New YorkSame thing happened in North Carolina about two years ago.
Even though it may be shipped interstate, it still has to take place somewhere. Either the buyer's state or the seller's state is entitled to sales tax collection. It's a physical good coming from somewhere and going to somewhere.It's interstate commerce, not sales that take place IN California. I don't know why this is so hard for the mental midget lawmakers in Cali to understand. Referring people to a website and getting paid for it does not mean the POSale took place in California.
The system is fine, "affiliates" who are paid are still supposed to report that on their state income taxes. If not, then they risk being audited, it's always been this way in most states. Forcing Amazon to charge them sales tax is just shooting themselves in the foot.
This also doesn't mean that affiliates will be out of business. They will just reincorporate to a friendlier state such as Delaware since it's interstate commerce. Amazon's payout is based off of their affiliates' state that they are incorporated in, correct me if I'm wrong.
So what can you do to protect your Online Business? First you’ll need to set up a company within one of the States that is least likely to pass any Nexus Laws.
Two States you can look at are Delaware and Nevada. Ever notice the mailing address on your credit card statement? Most companies are incorporated Delaware because there’s no taxes!
Filling out paper work is fairly easy. These days it can be completed long distance… online or by mail. Next you’ll need to have a physical mailing address in that State, this is key. Set up a mail pickup service and you now have a presence within that State.
Simply reapply to the Amazon Associate Program…once they verify mailing your back in business. Amazon does not care if you actually live in that State!
Even though it may be shipped interstate, it still has to take place somewhere. Either the buyer's state or the seller's state is entitled to sales tax collection. It's a physical good coming from somewhere and going to somewhere.
Sales tax isn't on the business though, it's on the buyer.I have no problem with sales tax being applied to the state the item is shipped to, that is entirely their pejorative. However, double dipping to try and steal money (yes, businesses are already taxed on that sale through income tax) is horse manure.
About on par with Chicago's mayor (at the time) who wanted to tax DirecTV because they were identical to the local cable operators even though a) their satellites didn't fly overhead, or b) did not use the right-of-way.it's amazing that these idiots get paid 6 figures to come up with such genius.
we're fucked if we do, and we're fucked if we don't.
Sales tax isn't on the business though, it's on the buyer.
More to the point though this isn't about whether you feel multiple taxes are fair (you and the rest of the citizens in your state can decide that). It's about buyers failing to pay their taxes and Amazon making a business out of it.
How do the 4 states that don't require sales tax survive in this brave new world? THINK OF THE FIREMEN, POLICE AND CHILDREN! /roll Fiscal liberals sicken me.
You Cali people crack me up. The Cali govt couldnt manage a McDonald's but you guys are begging them to take even more of your money when yall already have one of the highest costs of living in the country. No wonder Cali will soon be the first state on welfare.
"Let's run off one of the few places that actually creates jobs and money. "
I have Amazon Prime too. Currently on another 3 months free trial. I had free Prime 8 out of 12 months last year. They keep offering to me. I would never pay for the service. Especially without sales tax savings. Still product today > product in 2 days.
How so with the nose/face?
losing the jobs at the amazon facility because amazon won't be taxed if there is any way they can avoid it.
But Amazon isn't being taxed. It is merely being forced to become a sales tax collector in the state of California.
I might not have been clear. Amazon is staying. The first vote against the Amazon exemption, by the legislature, was 100% politics. The big lobbies of wal-mart, lowes, etc poured $$ into the political coffers. My rep. basically told me that they(Amazon) needed us.:\losing the jobs at the amazon facility because amazon won't be taxed if there is any way they can avoid it.
You Cali people crack me up. The Cali govt couldnt manage a McDonald's but you guys are begging them to take even more of your money when yall already have one of the highest costs of living in the country. No wonder Cali will soon be the first state on welfare.
"Let's run off one of the few places that actually creates jobs and money. "
I have Amazon Prime too. Currently on another 3 months free trial. I had free Prime 8 out of 12 months last year. They keep offering to me. I would never pay for the service. Especially without sales tax savings. Still product today > product in 2 days.
Yet, Tex-Ass is in similar financial straits...
http://www.reuters.com/article/2011/02/04/us-usa-deficits-states-idUSTRE71314420110204
the one thing that article mentions that is a plus for Tex-Ass is the tax on gas & oil production.
California has tried a few times over the years to implement such a tax...but the state's Republicans have always managed to stop it.
Other articles that discuss how bad Texas' budget deficit:
http://www.calitics.com/diary/11753/texas-budget-deficit-shatters-myths-about-californias-deficit
http://www.nytimes.com/2011/01/07/opinion/07krugman.html
http://www.washingtonpost.com/wp-srv/special/politics/state-budget-crisis/index.html
Sounds to me like your Tex-Ass high horse isn't as high as you like to think...
All your articles are months old, pre-dating Texas' new budget. All social and education programs were cut to the bone. A couple billion was taken out of the state's savings fund. Deficit was eliminated.
Amazing how the money magically becomes available when the budget is bone dry. Just think, other states are already doing it without a sales tax.