Amazon cuts deal with California over Sales Tax Collection

[markbot]

Originally Posted by Dulin's Books

Amazon has agreed to pull out of the Referendum it was sponsoring to repeal the new online sale tax laws and California has agreed to delay the start of the new requirements by a year.

http://www.latimes.com/business/la-f...tory?track=rss

Personally I think interstate "use taxes" are really just interstate tariffs, which are unconstitutional. How exactly is a use tax for interstate commerce different from a tariff on a tv import from Japan. they amount to the same damn thing....it's just called something different.

the US Supreme Court should take a look at these use taxes.

[Andrew H.]

Originally Posted by markbot

Personally I think interstate "use taxes" are really just interstate tariffs, which are unconstitutional. How exactly is a use tax for interstate commerce different from a tariff on a tv import from Japan. they amount to the same damn thing....it's just called something different.

the US Supreme Court should take a look at these use taxes.

A use tax is different from a tariff because it doesn't penalize the out-of-state company. If the state sales tax is 7%, the use tax will likewise be 7%. If there is no state sales tax, there will be no use tax.

With a tariff, the Japanese TV import would have to pay whatever the tariff is (say 10%), but the local company would not have to pay anything.

[Xenophon]

Originally Posted by Andrew H.

A use tax is different from a tariff because it doesn't penalize the out-of-state company. If the state sales tax is 7%, the use tax will likewise be 7%. If there is no state sales tax, there will be no use tax.

With a tariff, the Japanese TV import would have to pay whatever the tariff is (say 10%), but the local company would not have to pay anything.

In some states, the use tax due is reduced by the amount of any out-of-state sales tax paid on the item. So if you buy something in a 3% sales tax state and immediately ship it to a 7% sales tax state, you wind up owing only 4% rather than 7%. Did that make sense?

Xenophon

[gweeks]

Originally Posted by Xenophon

In some states, the use tax due is reduced by the amount of any out-of-state sales tax paid on the item. So if you buy something in a 3% sales tax state and immediately ship it to a 7% sales tax state, you wind up owing only 4% rather than 7%. Did that make sense?

In most states the use tax is due for any purchases made out of state regardless of if it's in person or mail order. Mail order includes the internet. The difference is where the catalog is located. The provision you are summarizing is for the case where you have paid the sales tax in the other state. The place I've ran into this often is car purchases. Bring a car into MO from KS and you WILL pay the use tax on it. They won't license it otherwise. I think the two states now have a deal in place where KS car dealers will collect the sales tax for MO, but it's deal between the two states that has the KS government requiring their car dealers to collect it for MO.

Greg Weeks

[Andrew H.]

Originally Posted by Xenophon

In some states, the use tax due is reduced by the amount of any out-of-state sales tax paid on the item. So if you buy something in a 3% sales tax state and immediately ship it to a 7% sales tax state, you wind up owing only 4% rather than 7%. Did that make sense?

Xenophon

That makes perfect sense.

[DianNC]

I still don't get why California continues to shoot itself in the foot...passing yet more legislation that drives businesses from the state. Shouldn't they be doing everything they can to entice businesses to want to stay there...and thrive?

Here's one affiliate's 'Dear John' letter to the state...

http://www.savings.com/blog/post/Our...alifornia.html