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Order your parts now, the tax man cometh

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
21,976
7,834
Colorado
Yeah... awesome. That really make things inconvenient. But it's cool, I wanted the extra taxation.
 

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
21,976
7,834
Colorado
Oh no. Amazon will finally be charging the sales tax that you were obligated to pay in the first place... The horrors.............


:rolleyes:
It's not just Amazon though. There are tons of other companies that I buy from which it will no longer be advantageous. Plus if I get what I'm working on off the ground, It's going to be an added nightmare for my out of state sales.
 

dante

Unabomber
Feb 13, 2004
8,807
9
looking for classic NE singletrack
It's not just Amazon though. There are tons of other companies that I buy from which it will no longer be advantageous. Plus if I get what I'm working on off the ground, It's going to be an added nightmare for my out of state sales.
You're still not required to charge out of state sales tax if you don't have a presence in the state... the problem is that Amazon has "a presence" in Cali, so they have to charge sales tax. If you're ordering things from other merchants (without a state presence), you're probably fine.

Of course, you *have* been declaring that on your state income tax filings every year, right?? ;)
 

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
21,976
7,834
Colorado
You're still not required to charge out of state sales tax if you don't have a presence in the state... the problem is that Amazon has "a presence" in Cali, so they have to charge sales tax. If you're ordering things from other merchants (without a state presence), you're probably fine.

Of course, you *have* been declaring that on your state income tax filings every year, right?? ;)
of course...
I'm more concerned with the setting of precedence for other states.
 

BadDNA

hophead
Mar 31, 2006
4,263
237
Living the dream.
of course...
I'm more concerned with the setting of precedence for other states.
The precedent has already been set. I'm too lazy to go find specific examples but there are may online retailers that charge sales tax to residents of states in which they have a physical presence. It's been going on for quite a while.
 

dante

Unabomber
Feb 13, 2004
8,807
9
looking for classic NE singletrack
The precedent has already been set. I'm too lazy to go find specific examples but there are may online retailers that charge sales tax to residents of states in which they have a physical presence. It's been going on for quite a while.
It mainly affects Amazon because the IRS (and courts) have found that having "Affiliates" in the state constitutes having a physical presence. Amazon sued to stop this happening in NY, and lost. IL has already passed a law stating this as well. Again, *so far* it doesn't really extend beyond a few massive internet retailers who contract with affiliates to advertise their website.

Besides, even if you get an internet company up and running, unless you're manually looking up tax rates and entering credit card numbers, whatever program you're using (google checkout, paypal, etc) already has all of the information baked in. When someone buys a bike (for example) and pays via google checkout, google checks the shipping address and charges the appropriate taxes based on whether the receiver is in-state and what county they live in.
 

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
21,976
7,834
Colorado
Amazon dropped their Affiliates program in CA:
http://www.ocregister.com/articles/amazon-306409-affiliate-california.html

I still want to see net tax revenues from companies that are affiliates before these laws are enacted and after. In Illinois a large number of high profile affiliates left the state. You have to figure that the loss of corporate income as affiliates are dropped and move out of state to continue revenue streams will offset the small amount of taxes collected from the non-Amazon's.
 
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