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The problem is that states aren't seeing the sales tax revenue from out of state purchases and have become increasingly insistent that they receive said revenue

The problem is that states aren't seeing the sales tax revenue from out of state purchases and have become increasingly insistent that they receive said revenue. They've tried collecting it on income taxes (who really files that anyway?) but it doesn't work. Facing increased budget pressure, the states aren't likely to give up. More than likely, any competitor who isn't at least Amazon-sized (and let's be serious, other than maybe Walmart, who is?) is going to get leaned on hard by the state's legal department if the competitor doesn't roll over on the Amazon tax. I don't foresee any competition taking over Amazon's market share over a 6.5% sales tax.

jpdoctor 14y ago
> The problem is that states aren't seeing the sales tax revenue from out of state purchases and have become increasingly insistent that they receive said revenue. That's not a problem: It's a use-case covered explicitly by the US constitution. The real problem is that the states have been slow to change and adapt to a world where interstate commerce is edging out intrastate commerce. Trying to overrule the constitution is just waiting for someone with deep pockets to make a federal case out of it. Already amazon is losing biz on electronics to the folks that aren't collecting.
- gamblor956 14y ago
  Trying to overrule the constitution is just waiting for someone with deep pockets to make a federal case out of it. Already happened, in the famous Quill case. Consequently, is permissible to impose a sales tax on out-of-state retailers if they have a "substantial nexus" with the taxing state.
Osiris 14y ago
Colorado passed a law that tried to require internet retailers to provide the state with a summary of purchases made by CO residents so that those residents would be required to paid sales tax. The law was stricken down and again on appeal as a violation of the Commerce clause of the U.S. Constitution.
meh01 14y ago
Companies do in fact file use tax (in CA). Why open yourself up to FTB action for ~8% on your Amazon purchases?

jpdoctor 14y ago

> The problem is that states aren't seeing the sales tax revenue from out of state purchases and have become increasingly insistent that they receive said revenue. That's not a problem: It's a use-case covered explicitly by the US constitution. The real problem is that the states have been slow to change and adapt to a world where interstate commerce is edging out intrastate commerce. Trying to overrule the constitution is just waiting for someone with deep pockets to make a federal case out of it. Already amazon is losing biz on electronics to the folks that aren't collecting.

gamblor956 14y ago
Trying to overrule the constitution is just waiting for someone with deep pockets to make a federal case out of it. Already happened, in the famous Quill case. Consequently, is permissible to impose a sales tax on out-of-state retailers if they have a "substantial nexus" with the taxing state.

Osiris 14y ago

Colorado passed a law that tried to require internet retailers to provide the state with a summary of purchases made by CO residents so that those residents would be required to paid sales tax. The law was stricken down and again on appeal as a violation of the Commerce clause of the U.S. Constitution.

meh01 14y ago

Companies do in fact file use tax (in CA). Why open yourself up to FTB action for ~8% on your Amazon purchases?