Regional Talk > Southern California > Goodnight, Sweet Prince: CA Amazon Sales Tax 9/12

Goodnight, Sweet Prince: CA Amazon Sales Tax 9/12

Why? What's wrong with the Amazon deal?

Nothing really. I just know that having sales tax collected by Amazon would drive away a fair amount of their CA sales. But hey, if they feel that it's in their best interest...I think Amazon understands their situation a lot better than anyone else.

The deal states they have a 1 year reprieve in collecting taxes while the federal government makes it's ruling. Therefore, they won't be charging tax - to PREVENT losing business.
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"Government big enough to supply everything you need is big enough to take everything you have" Gerald Ford

Thus why after 9/2012, assuming no surprise last-minute plays by the judicial system, that's when Amazon plans on collecting tax. Or somehow I'm reading this article in a different manner.

"It's a safe harbor for up to a year," Calderon said of the agreement he helped strike. "If they can't get Congress to act by next July, then they will start to collect the tax in September 2012. If by chance they get Congress to act, then that would trump the state law."

reply to Thaler
Okay...I was thinking your concern was immediate, not a year away.

This whole issue revolves around the California affiliates. After 9/2012 i bet you'll still be able to buy from Amazon "tax-free", you just won't be able to buy from shops based in CA. California; affiliates will be dropped.

This is what makes this ludicrous. Our legislature wants the tax revenue, but after Amazon drops the affiliates, they won't get taxes from Amazon AND any tax revenue from the affiliates.

We'll see what happens in a year.
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"Government big enough to supply everything you need is big enough to take everything you have" Gerald Ford

Didn't amazon already do that? (drop the affiliates.)

They initially did, but after the new agreement, they brought them back in.

»www.seattlepi.com/news/article/C···3793.php

The feds will probably end this anyway regardless of the SCOTUS decision in 1992 , but I remain guardedly optimistic.
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"Government big enough to supply everything you need is big enough to take everything you have" Gerald Ford

There is a guy in front of my local Trader Joe's collecting signatures to get this added to the next ballot. He's been there every day for the past couple of months so I'd have to imagine he's collected quite a few signatures by now.

Interesting. I thought Amazon gave up the signature collecting.
I wonder if Amazon is sponsoring that still.
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"Government big enough to supply everything you need is big enough to take everything you have" Gerald Ford

reply to heliox
This is a terribly written article and there is so much wrong information on this topic it's not even funny.

The law has to do with affiliates (advertisers - i.e. you have site, make links to amazon and collect 5% of the sales). It said that affiliates in CA would mean Amazon has a presence in CA and would be required to collect tax. Amazon dropped all CA affiliates so they wouldn't have to collect tax.

This causes 1 of 2 things to happen. For small affiliates they no longer earn any money. That sucks but if they were only earning 50 or 100$ a month before then it's not worth it for them to move.

For big affiliates (businesses) they have no choice. They have to leave California. Immediately. I would guess most of them already left.

This law is just so many levels of STUPID on the part of CA it's not even funny. The big affiliates are already gone. Now they plan to lure jobs back to California by allowing Amazon to keep it's affiliate program for another year? So after just moving out of state they are supposed to move back and then in a year move back out again?

And don't think for a second that Amazon will actually agree to collect tax next year. The agreement is simply that they can keep their affiliate program for another year and they will just cut it off again when the year is up. They make way too much money and have such a huge competitive advantage by not having to collect tax that they will never voluntarily do it.

As far as the issue with the federal government I believe it's just Amazon trying to get them to say that no it's not ok to count affiliates as a presence. A federal sales tax is so far off that it's laughable, although there are HUGE lobbying dollars (all non-internet retailers) trying to get this stopped. I would guess they will try to come up with some creative solutions to get it stopped, but it will be difficult due to the old SC case.

reply to heliox
Apparently they did as he's not collecting signatures for the Amazon initiative anymore, but for something else now.

reply to Thaler
I always bought from Amazon because of the no tax deal.

As did millions of others.

reply to PhiloVance
Same. Amazon was always a guaranteed ~10% discount for me.

reply to Thaler
Why is everyone using past tense...?
Today's delivery says:
Sales Tax: $0.00

I probably should've written the topic header as 9/2012 instead of 9/12. The changes we're talking about are set to occur next year.

reply to heliox