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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I rather imagine it is not just Amazon droping these states.
And the podunk legislature is likely too inbred to realize tha the businesses who cease doing business do not all get replacements stepping in. So after the initial revenue surge there will be an overal net loss.