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Yes. The sales tax consequence to amazon is huge. I really don't know why these rumors keep popping up every couple of years. Perhaps it's because Werner Vogels

by elq 17y ago

Yes. The sales tax consequence to amazon is huge. I really don't know why these rumors keep popping up every couple of years. Perhaps it's because Werner Vogels spoke at our weekly tech talk thing?

mediaman 17y ago
Interesting. How many states does Netflix have tax nexus in? Amazon already has DCs in ten states.
- elq 17y ago
  there are 58 dvd distribution centers or hubs. most states have at least one.
brown9-2 17y ago
Can you expand on what these consequences are a bit for those of us unfamiliar...?
- elq 17y ago
  Netflix has facilities in most states. Amazon would have to collect sales tax in most (if not all) of these states. http://kara.allthingsd.com/20090714/amazon-buys-netflix-microsoft-is-much-a-better-guess-as-a-potential-acquirer/ http://kara.allthingsd.com/20090714/amazon-buys-netflix-micr...
  - TrevorJ 17y ago
    Doesn't Amazon have facilities all over the country as well?
    - elq 17y ago
      Almost all of them are in places where there is no local or state sales tax.
      - mbrubeck 17y ago
        One exception of course being WA (where Amazon has its corporate headquarters) which has a substantial sales tax but no income tax.
ja27 17y ago
I'm sure that Amazon sees the internet sales tax loophole coming to an end. As states get more desperate for tax revenue, they'll be pushing hard to require internet sellers to collect and pay sales tax. I don't know that this makes the Netflix rumor any more likely, but you can't just dismiss it based on sales tax implications.