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> Walmart and others complained about Amazon stealing customers and had the states crack down on them for state sales tax. This is one of those rare instances
by techsupporter 9y ago
> Walmart and others complained about Amazon stealing customers and had the states crack down on them for state sales tax.
This is one of those rare instances where I'm going to agree with Wal-Mart here. Yes, residents of an area with a sales tax are supposed to remit that tax to the local government. No, virtually nobody actually does this.
Wal-Mart was at a legal disadvantage because it is following the local law that says "if you have a sales presence here, you must collect sales tax here." Amazon shouldn't be able to skirt that by saying "oh, our warehouses are technically owned by Amazon Warehouse Services, LLC and not the actual Amazon.com, Inc. that actually sold the products."
(Yes, I know the lore about how Bezos deliberately started Amazon in Washington State because, at the time, Washington was a smaller market compared to the ones he wanted to sell into "tax free," so that only proves my point about the deliberate tax dodge.)
- votepaunchy 9y agoStates are Constitutionally prohibited from taxing interstate commerce. Congress had to fix the problem (at their pace) of Amazon (and others) not paying sales tax to states in which it did not have a physical presence.