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Amazon to get cut of local sales tax in CA

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Amazon to get cut of local sales tax in CA

Old 05-21-12, 08:21 PM
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Amazon to get cut of local sales tax in CA

So I guess giving up that ballot measure won't work out too badly for Amazon:

http://www.latimes.com/business/la-f...,4308210.story

Excerpts:

As part of a pact reached last year with state lawmakers, some online retailers agreed to begin collecting sales taxes this fall. About half of the projected $316 million raised in the first full year is expected to come from merchandise sold by Amazon, which is also setting up two California fulfillment centers that will employ at least 1,000 workers each.

San Bernardino and Patterson, where the centers will be located, will gain not only jobs but also a tax bonanza: Sales to Amazon customers throughout California will be deemed to take place there, so all the sales tax earmarked for local government operations will go to those two cities. It's a windfall so lucrative about $8 million a year initially for each city that local officials are preparing to give Amazon the lion's share of their take as a reward for setting up shop there.
First off, I don't know why the two counties where the centers are located would get all of the taxes. The article says that initially the local part of the taxes will go to all CA cities depending on purchases, but when the centers open 100% will funnel to those two cities. That gives them a ton of power to negotiate these kinds of deals. I mean I guess if I'm going to have to pay sales tax anyway,giving it back to Amazon instead of counties I don't live in doesn't mean all that much, I'm just surprised.
Old 05-23-12, 06:33 PM
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Re: Amazon to get cut of local sales tax in CA

Just another racket.
Old 05-28-12, 09:07 PM
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Re: Amazon to get cut of local sales tax in CA

Gonna lose some sales from me. I'll head elsewhere to places that don't illegally charge tax.
Old 05-28-12, 09:15 PM
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Re: Amazon to get cut of local sales tax in CA

Crony Capitalism!
Old 05-28-12, 11:31 PM
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Re: Amazon to get cut of local sales tax in CA

Looks like some politicians are using their legislative powers to force businesses to handover money for jobs and taxes lost due to incompetence. Been seeing this more lately, and it's rather scary.
Old 06-04-12, 05:40 PM
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Re: Amazon to get cut of local sales tax in CA

Yep, come Sept 1st, Amazon loses my business...

Sorry, Amazon, tax kills the deals. Makes no sense to shop online then.

I hope they will lose a lot by this boneheaded decision. Make them rethink things.
Old 06-05-12, 12:03 PM
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Re: Amazon to get cut of local sales tax in CA

I just read that Amazon is going to start collecting taxes in NJ when they build 2 warehouses somewhere in the state.

http://rumson.patch.com/articles/chr...n-nj-purchases
Old 06-05-12, 04:19 PM
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Re: Amazon to get cut of local sales tax in CA

Gonna lose some sales from me. I'll head elsewhere to places that don't illegally charge tax.
So you don't want to pay $65 in sales tax when you buy a coffee table?

I guess I better hurry up and buy the stuff remaining in my cart before sales tax is charged.

Sucks Best Buy does not offer free shipping anymore or they would be competitive in my eyes since Best Buy and Amazon would charge sales tax but you would not have to buy $25 worth of items to get free shipping.

Maybe more Ebay purchases now.
Old 06-21-12, 07:43 PM
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Re: Amazon to get cut of local sales tax in CA

If you do a preorder for the Titanic and Indiana Jones blu-ray would they adjust the total and add sales tax later when they ship in late Sept or Oct?
Old 06-23-12, 08:37 PM
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Re: Amazon to get cut of local sales tax in CA

I'm almost done placing a rather big order with Amazon before I probably stop buying from them. At this point I'm better off going to Target where I get 5% off using their in-house Credit Card. Really interested to see how big of a drop their Q4 sales will be once people just stop/slow buying from them and instead buy locally (or eBay).
Old 07-01-12, 10:43 PM
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Re: Amazon to get cut of local sales tax in CA

Anyone know if CA residents will be taxed if they order stuff through one of the foreign sites, like Amazon UK?

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