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Old 07-02-2009, 09:50 AM   #3
poohbear_nc
Now what?
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Posts: 58,856
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Join Date: Feb 2009
Location: Durham, NC
Device: Every Kindle Ever Made & To Be Made!
As a NC resident, let me try to clarify the sales tax situation here for retail sales, and why Amazon doesn't want to deal with it. About a year ago, to speed up payment of sales tax revenues to the state, NC passed a revision to its Sales & Use Tax regulations: Companies with retail sales, which formerly transmitted sales tax collected to the state once or twice a month, now have to PREPAY sales tax for the upcoming month. In other words, you have to prepay sales tax on sales you haven't made yet - kind of govenment financial time travel extortion. How this works:
You collected $10,000.00 in sales tax on retail sales done in June. You send that in after your June business month is over. You then also have to prepay at least 65% of that amount for July sales that haven't occurred yet! Another $6500.00 to the state. Once this cycle started, NC was able to pre-collect on sales that hadn't occurred. Don't ask me why this is legal, but it is in force.
This may be the reason Amazon is dropping states - that have these wacko schemes for collecting sales tax. Too much trouble for the amount of business from its affiliates?
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