I'm in SC and will be deleting it as well. They already have state income tax and this shit is double dipping.
5 year exemption. We desperately need the jobs.Amazon will be taxing you in the future right? At first they waivered but then were forced to for us in NY - and we're paying taxes with our purchases on amazon.com these days. It's listed as "estimated taxes" but they collect that exact amount at checkout.
Yes, 7%. If SC acts like the fed, there will be a 1,000,000% penalty on the $100.Future deals between Amazon and SC might have them getting historical data for audits. How much would the tax be on $1500? $100?
I'm in SC and will be deleting it as well. They already have state income tax and this shit is double dipping.
Amazon will be taxing you in the future right? At first they wavered but then were forced to collect from us in NY for purchases on amazon.com. It's listed as "estimated taxes" but they collect that exact amount at checkout.
Why isn't it fully enforced the same for everyone / every online-only retailer? What makes us special?
Because every state has different laws regarding taxation. NY led the initial charge to tax online sales from Amazon because they were losing lots of tax revenue. NY argued that the Amazon affiliate program established sufficient physical presence within the state to justify imposing an obligation to collect and remit use taxed owed by the consumer. The legislature revised the statute to reflect it's stance and I believe NY won the battle in court, which is why Amazon collects from you.
What people are missing is that Amazon's business model thrives on avoiding of tax collection. Yes, they also have great selection and 2-day shipping, but Amazon knows damn well that consumers hate paying taxes. And Amazon couldn't care less about whether you have to pay a use tax or not. From their standpoint, being required to collect and remit use tax would add to their expenses and potentially hurt their business. Amazon knows a lot of consumers use their site instead of Walmart.com or a B&M store simply due to tax avoidance.
The vast majority of states impose a sales tax and a corresponding use tax. Some states don't (e.g. Amazon would not send you this letter had you made the exact same purchase as a NH resident). You owe SC tax based on your purchases from Amazon. Whether you wish to report them to the state is your business. But remember that state and local governments rely upon sales and use tax revenue (roughly a 1/3 of their tax revenue) and they're losing loads of money to online sales.
Currently, a state may not require a retailer with no physical presence within the state to collect and remit a use tax owed to the state by the consumer. Many people dislike this because it gives online retailers a competitive advantage over B&M and local stores and because frankly, much taxable revenue is lost because of this rule. Many states are expanding their sales and use tax statutes to capture these online purchases. Whether they will be successful is a different matter. Ultimately, the issue will need to be resolved by the Supreme Court or Congress. Congress could very easily clean up this issue, but since they have trouble getting us a balanced budget...I wouldn't count on it.
From my accountant on the odds of Amazon giving up old info:Slim to none!Future deals between Amazon and SC might have them getting historical data for audits. How much would the tax be on $1500? $100?
Not sure why you think this is double dipping. You clearly owe a use tax to the State based upon your purchases from Amazon. The only difference here is that SC cannot require (or Amazon won't cooperate) Amazon to collect and remit your obligation to the state. The use tax is a tax on consumption and completely different from an income tax.
how is that not double taxing?
For every $1 I make, they take .06 plus another .07 when I spend it in the state of SC.
You're dealing with two distinct taxes: one on income and the other on consumption. Why is that difficult to understand? Double taxation refers to two taxes on the same thing (the same income, sale, etc.).
So it's double taxing in the sense that you pay 2 taxes, but you're not taxed on the same thing twice--regardless of how you state it.
You'll be happy to know that my grandfather was one of the original proponents for a sales tax. But it all was supposed to go towards education. That didn't last long. My grandparents were life long educators.No matter how you try and spin it, the state still uses tax twice to double dip on the same money. They could use 5 freakin taxes but the money still goes to the state.
You're dealing with two distinct taxes: one on income and the other on consumption. Why is that difficult to understand? Double taxation refers to two taxes on the same thing (the same income, sale, etc.).
So it's double taxing in the sense that you pay 2 taxes, but you're not taxed on the same thing twice--regardless of how you state it.
or forward to my tax lady like a good citizen should?
Maybe. She just emailed me again asking about it because there "may" be a sharing of information. I forwarded it to her. Rather pay the $100 than have to worry about penalties later.That wouldn't make you a good citizen, it would make you stupid
How is it NOT double taxing? Like he said, the state income tax is on every dollar you make. Sales tax is on every dollar you spend. Thing is, every dollar you spend is what's left AFTER it has already been taxed as income.
Worse yet... Federal income tax makes it 3 taxes on every dollar. Then SSI and medicare on top of that make it 5 times taxed on every dollar you earn.
But wait, there's more! Those dollars that you earn? Yeah, they're taxed as income on the company that pays it to you (along with a whole host of other taxes).
When it's all said and done, it's really fucking ridiculous. Then you have to pay SALES tax too?
As soon as i got a 1 year membership for being a student i started to spend a ton more on Amazon. I even buy a lot of smaller items like food seasoning because of the free fast shipping.
diversionReally? Complaining about taxes? #firstworldproblems. Don't live out of your means and it shouldn't be an issue.
Wow, just exported a report of last year's purchases to excel, and I spent $2882.40 on Amazon in that time period And that's without any big-ticket items.
I'm glad Amazon charged taxes up front for me (NY).