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"There are some exceptions: Amazon currently charges California residents sales tax" I hate this incorrect terminology. Amazon merely collects sales tax on beh

by coin 14y ago

"There are some exceptions: Amazon currently charges California residents sales tax" I hate this incorrect terminology. Amazon merely collects sales tax on behalf of the state. The state is the one charging the sales tax.

greenyoda 14y ago
Amazon has also been collecting NY State sales tax for quite some time now. Does anyone know if Amazon has any physical presence in NY State? I've never received anything from Amazon that has been shipped from NY. I noticed that items that are sold by Amazon always incur NY tax, but items sold by independent retailers who sell through Amazon's site often don't incur tax.
- _delirium 14y ago
  NY argues that Amazon's relationship with NY-based affiliates constitutes a NY-based Amazon marketing force that produces a sufficient nexus with the state to make them subject to NY law on collecting sales tax. It's currently being litigated [1]. I recall reading [2] that Amazon actually supports the federal legislation though, because they're slowly moving towards having a 50-state presence anyway, as things like grocery delivery and same-day delivery become a bigger part of their strategy. [1] http://www.reuters.com/article/2013/02/06/us-tax-amazon-court-idUSBRE9151C720130206 http://www.reuters.com/article/2013/02/06/us-tax-amazon-cour... [2] http://www.slate.com/articles/business/small_business/2012/07/amazon_same_day_delivery_how_the_e_commerce_giant_will_destroy_local_retail_.html http://www.slate.com/articles/business/small_business/2012/0...
  - andrewpi 14y ago
    Didn't Amazon drop affiliates in other states when those states tried to use the affiliate rationale to charge sales tax? Why is NY different?
    - _delirium 14y ago
      That was their initial "scorched-earth" strategy, but they quickly dropped it. In recent disputes, e.g. with Texas and New York, they haven't terminated affiliates, and have instead opted for a mixture of negotiations and legal battles.
- sk5t 14y ago
  Amazon also collects sales tax in Pennsylvania, where they have significant distribution facilities. However, it took several years for the tax collection to materialize. Technically residents of a state are supposed to pay "use tax" if not collected by the seller. Of course almost nobody does this... my hunch is that doing it once would invite perpetual persecution from the state department of revenue.
biot 14y ago
How is it incorrect? Amazon charges its customers credit cards, and a portion of that charge consists of sales tax which it is obligated to collect on behalf of the state.
johnrgrace 14y ago
The "exception" is because Amazon has business operations in the state of California, they go to great lengths to keep the list of states the collect sales tax in limited.

by coin 14y ago

greenyoda 14y ago

Amazon has also been collecting NY State sales tax for quite some time now. Does anyone know if Amazon has any physical presence in NY State? I've never received anything from Amazon that has been shipped from NY. I noticed that items that are sold by Amazon always incur NY tax, but items sold by independent retailers who sell through Amazon's site often don't incur tax.

_delirium 14y ago
NY argues that Amazon's relationship with NY-based affiliates constitutes a NY-based Amazon marketing force that produces a sufficient nexus with the state to make them subject to NY law on collecting sales tax. It's currently being litigated [1]. I recall reading [2] that Amazon actually supports the federal legislation though, because they're slowly moving towards having a 50-state presence anyway, as things like grocery delivery and same-day delivery become a bigger part of their strategy. [1] http://www.reuters.com/article/2013/02/06/us-tax-amazon-court-idUSBRE9151C720130206 http://www.reuters.com/article/2013/02/06/us-tax-amazon-cour... [2] http://www.slate.com/articles/business/small_business/2012/07/amazon_same_day_delivery_how_the_e_commerce_giant_will_destroy_local_retail_.html http://www.slate.com/articles/business/small_business/2012/0...
- andrewpi 14y ago
  Didn't Amazon drop affiliates in other states when those states tried to use the affiliate rationale to charge sales tax? Why is NY different?
  - _delirium 14y ago
    That was their initial "scorched-earth" strategy, but they quickly dropped it. In recent disputes, e.g. with Texas and New York, they haven't terminated affiliates, and have instead opted for a mixture of negotiations and legal battles.
sk5t 14y ago
Amazon also collects sales tax in Pennsylvania, where they have significant distribution facilities. However, it took several years for the tax collection to materialize. Technically residents of a state are supposed to pay "use tax" if not collected by the seller. Of course almost nobody does this... my hunch is that doing it once would invite perpetual persecution from the state department of revenue.

biot 14y ago

How is it incorrect? Amazon charges its customers credit cards, and a portion of that charge consists of sales tax which it is obligated to collect on behalf of the state.

johnrgrace 14y ago

The "exception" is because Amazon has business operations in the state of California, they go to great lengths to keep the list of states the collect sales tax in limited.