Amazon shoppers will squeeze through Calif. tax loophole

[MontyAC]

Interesting loophole.



http://news.cnet.com/8301-13578_3-5...pers-will-squeeze-through-calif-tax-loophole/

 

[Slew Foot]

Sweeeeeeet! Though third party sellers tend to be more expensive.

 

[preslove]

Yeah, I've noticed this here in texas. Stuff that is "fulfilled by amazon" oftentimes isn't taxed, but still is available through prime .

 

[Gothgar]

Hopefully Amazon ups their catalog of things that they fulfill for other companies

 

[Rumpltzer]

Been wondering if this would be the case... happy to hear it, but still sad at the overall demise of our "tax holiday".

I've got about $700 of shit in my cart right now. Need to hit that checkout button in the next few days...

 

[Ns1]

nice, I guess I'll be buying more "fulfilled by AMZ" items

 

[V00DOO]

Nice! My friends and I were debating last night whether or not fulFilled by Amazon will get tax.

 

[lothar]

Heh.

 

[thegimp03]

In before this turns into a flame fest about reporting purchases on your tax return anyways.

 

[Pray To Jesus]

In before this turns into a flame fest about reporting purchases on your tax return anyways.

u don't???????????????????????

 

[highland145]

u don't???????????????????????

I didn't until A. sent me a total for "informational purposes" in 2011. "We do not give this information to the state of S.C." My question is when they start in 5 years, how long back will they give it? Not interested in owing back taxes and penalties so I paid.

 

[paperfist]

Damn, 9.75% tax rate and they have how many problems? I thought NY was brutal (well it is, but (8.7%).

 

[highland145]

Damn, 9.75% tax rate and they have how many problems? I thought NY was brutal (well it is, but (8.7%).

Are they still paying the extra 10% income tax too?

 

[NutBucket]

Tax could be 20% and it wouldn't matter given the way the gov't wastes money. And yet voters won't put one and one together and elect some new people to the legislature. How pathetic is it that the governor was previously our governor?

Sorry for the rant.

 

[djnsmith7]

Awesome news, especially if it sticks. I'm sick of CA trying to rape every single person in this state. They deserve a good kick in the teeth.

 

[jhansman]

Except, these items do not qualify for Prime, so you end up paying shipping instead. More like a tradeoff to me. Gotta remember, the state is broke because it stupidly allowed all those state workers lifetime pensions that can no longer be afforded. Gotta raise revenue any way they can...

 

[Ns1]

Except, these items do not qualify for Prime, so you end up paying shipping instead. More like a tradeoff to me. Gotta remember, the state is broke because it stupidly allowed all those state workers lifetime pensions that can no longer be afforded. Gotta raise revenue any way they can...

That is not how "fulfilled by amazon" works.

 

[DrPizza]

As I understand it, those fullfilled items - they're still maintained in Amazon's warehouse. The seller's of those items pay a daily fee to Amazon for storing them.

How is renting space for your merchandise NOT having a physical presence?

And, highland175 raises a good point. You *know* that Amazon, etc., are keeping records of who bought what. What happens if some state figures out how to manipulate some obscure law that's been on the books for years in order to force the release of that data. Penalties and interest for everyone who dodged paying the sales tax?

 

[preslove]

What happens if some state figures out how to manipulate some obscure law that's been on the books for years in order to force the release of that data. Penalties and interest for everyone who dodged paying the sales tax?

Given that barely anyone pays those taxes, a decision to go after people for back taxes would negatively affect most people who have bought stuff online. That would be extremely unpopular, to the point of getting someone voted out of office.

 

[Andrew111]

As I understand it, those fullfilled items - they're still maintained in Amazon's warehouse. The seller's of those items pay a daily fee to Amazon for storing them.

How is renting space for your merchandise NOT having a physical presence?

And, highland175 raises a good point. You *know* that Amazon, etc., are keeping records of who bought what. What happens if some state figures out how to manipulate some obscure law that's been on the books for years in order to force the release of that data. Penalties and interest for everyone who dodged paying the sales tax?

Retroactively trying to recover taxes from online sales simply won't work....it's too big of a constituency in any state for state politicians to be able to withstand the shitstorm that would erupt if they had the gall to even attempt it.

 

[DrPizza]

Retroactively trying to recover taxes from online sales simply won't work....it's too big of a constituency in any state for state politicians to be able to withstand the shitstorm that would erupt if they had the gall to even attempt it.

I'm not saying it would be an incredibly unpopular thing to do... Everyone knows that. But, do you think it's the *right* thing to do? (Morally, ethically?)

 

[IronWing]

Hopefully Amazon ups their catalog of things that they fulfill for other companies

Amazon just needs to set up a bunch of shells. Sold by Amazon of Louisiana, fulfilled by Amazon of California.

 

[Ns1]

Got about 10 boxes from Amazon so far in the past 24 hours.

 

[thegimp03]

Got about 10 boxes from Amazon so far in the past 24 hours.

Haha, buy anything interesting?

 

[Newbian]

Haha, buy anything interesting?

They are full of fleshlights.

He is stocking up for the weekend.