Amazon is now charging sales tax in Indiana, Nevada, and Tennessee

Status
Not open for further replies.
Hall

Hall

SatelliteGuys Master
Feb 14, 2004
18,409
3,195
Germantown OH
Hope this does not happen for every state.
Without reading the article, I presume it explains this: Amazon has facilities (warehouses) in those states. I know they've fought this sales tax issue, but charging sales tax to residents where companies have a physical presence shouldn't be a surprise. For example, Dell adds sales tax to mail-order computers for people who have Dell kiosks in a mall in their state...
 
DJdish

DJdish

SatelliteGuys Master
Feb 20, 2010
16,796
1,422
Mexico City
From article linked below:

Amazon has agreed to build two new warehouses in Tennessee. In the other states, it agreed to collect sales tax beginning Jan. 1 to resolve long-running disputes with state officials.
Amazon suffered a setback in December when the U.S. Supreme Court declined to hear its appeal of rulings regarding sales-tax collection in New York State. New York had required Amazon to collect the tax because it has affiliates – firms that send online traffic to Amazon in exchange for a fee – in the state.
The court’s move could open the door for other states to require Amazon to collect tax. In some states, including Minnesota and Missouri, Amazon severed relationships with affiliates rather than collect the tax.

http://blogs.wsj.com/digits/2014/01...ales-tax-for-amazon-shoppers-in-three-states/
 
M

Mr Tony

SatelliteGuys Pro
Supporting Founder
Nov 17, 2003
559
263
Mankato, MN
Without reading the article, I presume it explains this: Amazon has facilities (warehouses) in those states.

actually you can also charge sales tax if as example the owner of the company has business property in that state. At my job we have to charge tax in MN (because we're here), SD (office there) and Nevada because one of the owners has a house there
 
Hall

Hall

SatelliteGuys Master
Feb 14, 2004
18,409
3,195
Germantown OH
Yeap, that falls under my comment about "companies have a physical presence"...
 
Ramy

Ramy

The Star Wars Collector Podcast
Supporting Founder
Jan 27, 2004
30,901
514
Here
Been charging it in my state for years now.
 
stardust3

stardust3

SatelliteGuys Master
Pub Member / Supporter
Lifetime Supporter
Mar 7, 2006
8,693
7,064
.....
This is really disappointing.

I knew this was coming & in 1 last ditch attempt to send the finger to the lawmakers I ordered nearly everything on my wish list prior to 1/1. Spent nearly $1000 tax free. They can put that in their pipe & smoke it, oh wait, that's CO. :rolleyes:

A person has to price compare shop more now than ever. I'll continue to use amazon, but not nearly as much. I'm sad just as I was when Napster shut down during its prime. Good things come & go, the cycle continues as do I in search of.....

Companies do not have to have a presence anymore to collect sales tax. NY set the lead for others to follow...http://www.bloomberg.com/news/2013-...-by-u-s-high-court-on-new-york-sales-tax.html
 
dont24

dont24

Pub Member / Supporter
Pub Member / Supporter
Nov 20, 2004
1,983
66
MA
They started collecting in Mass on 11/1. I bought more from NewEgg this holiday season. I will also continue to use Amazon. Still cheaper than any local B&M store. Bestbuy will price match Amazon, but it's a PITA.
 
navychop

navychop

Member of the Month - July 2014!
Pub Member / Supporter
Lifetime Supporter
Jul 20, 2005
55,822
21,594
Northern VA
I can only say, it was a nice run while we had it. It helped develop a new retail channel.

Now, to bring some order to the ways States levy sales taxes. Some have many many rates, broken down not only by what category the item falls in (food, etc), but by County or other jurisdiction. Can get expensive keeping up with all that, plus changes.

Sent from my iPhone using SatelliteGuys
 
Teehar

Teehar

SatelliteGuys Master
Pub Member / Supporter
Sep 29, 2010
8,355
174
WNC
That does suck,NC will most likely be on that list very soon.I know folks in Tn have to pay tax on newegg,now add amazon,double whammy.Walmart has been lobbying for amazon to pay tax,it certainly will benefit them in those states.
 
Bobby

Bobby

Publican
Supporting Founder
Lifetime Supporter
Sep 7, 2003
66,111
19,935
Rohnert Park, CA
The point is, Amazon prices are usually better than local prices. Yeah, you gotta add the taxes, but that works both ways. I still spend less while shopping Amazon than if I spent it locally and We've been paying state tax here in California for a year or more...
 
Foxbat

Foxbat

Addicted to new HW
Supporting Founder
Lifetime Supporter
Nov 25, 2003
18,601
11,520
Michiana
This is really disappointing.

I knew this was coming & in 1 last ditch attempt to send the finger to the lawmakers I ordered nearly everything on my wish list prior to 1/1. Spent nearly $1000 tax free. They can put that in their pipe & smoke it, oh wait, that's CO. :rolleyes:
Check your state's Income Tax laws. I bet that there's a place for you to include out-of-state purchases and Mail-order for inclusion. Legally, you need to account for it. Realistically, the odds of you getting audited for evading income tax on Internet purchases is practically nil.

It drove my wife crazy when I'd put in the $50-$100 for stuff I ordered off the Internet, but now she does our taxes (she IS the CPA) and isn't as civic-minded as I was.
 
king3pj

king3pj

SatelliteGuys Master
Lifetime Supporter
Jun 7, 2009
9,469
1,730
Michigan
Check your state's Income Tax laws. I bet that there's a place for you to include out-of-state purchases and Mail-order for inclusion. Legally, you need to account for it. Realistically, the odds of you getting audited for evading income tax on Internet purchases is practically nil.

It drove my wife crazy when I'd put in the $50-$100 for stuff I ordered off the Internet, but now she does our taxes (she IS the CPA) and isn't as civic-minded as I was.

Yep, I work at a CPA firm in Michigan. Here you are definitely supposed to include your out of state purchases on the MI-1040 Use Tax line. We always ask people if they made any big out of state purchases or if they do online shopping like we are supposed to. Most of them either say no or say something low like $100 and we don't push it. It's not our job to audit our customers and try to catch them in a lie. We ask them the questions to complete our due diligence but ultimately their tax return is their responsibility. If they choose to lie and get caught they have to deal with the consequences. Like you said, it's pretty rare for someone to get audited over it though. I bet that will start to change as people continue to make more and more of their purchases online.
 
navychop

navychop

Member of the Month - July 2014!
Pub Member / Supporter
Lifetime Supporter
Jul 20, 2005
55,822
21,594
Northern VA
I suppose you could look at your order history at Amazon and have that total rather easily. But who would remember every place they shopped over the year, especially the one off places?

Sent from my iPhone using SatelliteGuys
 
Status
Not open for further replies.

Similar threads

comfortably_numb
Replies
22
Views
2K
comfortably_numb
comfortably_numb
N
Replies
1
Views
267
primestar31
primestar31
E
Replies
1
Views
257
TheKrell
TheKrell

Users Who Are Viewing This Thread (Total: 0, Members: 0, Guests: 0)

Who Read This Thread (Total Members: 1)

  • Poke

Latest posts

Top