Quote:
Originally Posted by poohbear_nc
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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Nah, it's legal, stupid, but legal. Makes about as much sense as making people pay income tax quarterly based on last year's income. If you don't make as much, sure they refund the excess, but meanwhile, they've had the use of your money, and they don't pay you any interest for the period of time they've had it .... which is just wrong on so many levels.