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hkem1

Beach Fanatic
Sep 8, 2007
349
42
Cliffnotes version of argument.

Amazon says it should not have to pay sales tax and Texas disagrees. Amazon threatens to leave and take the 119 jobs to Oklahoma if Texas forces it to pay the taxes. Texas struggles with the decision, but ultimately decides to pursue the taxes which forces Amazon out of the state.

Texas Says Amazon Owes $269 Million in Sales Tax - WSJ.com

Amazon.com Inc. said it received an assessment of $269 million for uncollected sales tax from the state of Texas.

In the filing, Amazon said Texas "did not provide a sufficient basis for its assessment" and said it was without merit. "We intend to vigorously defend ourselves in this matter," it said.
In a statement R.J. DeSilva, a spokesperson for the Texas Comptroller's office, said that Amazon was audited for sales tax, and sent a bill in August. "The company has requested a re-determination which means this is an ongoing audit and could be decided as part of the administrative hearings process. The company would send documents and this process will continue," he said.

Amazon's Exit Spurs Tax Fight in Texas - WSJ.com

The planned closure of an Amazon.com Inc. distribution center in a suburb here has opened a debate about whether taxes or jobs is the better answer for Texas' tattered budget.

The online retailing giant said last week that it would close its center in Irving due to a dispute with the state comptroller, who is demanding that Amazon pay $269 million in sales taxes it should have collected on goods sold to Texas residents.


The uncollected taxes of goods sold online and through catalogs amounted to $8.6 billion in 2010, according to the National Conference of State Legislatures.

With its Irving warehouse, Amazon is considered to be doing business in Texas and is required to send in sales taxes for items it sells to state residents, Ms. Combs has argued. Last September, she sent Amazon a bill for taxes she said the company failed to collect from 2005 to 2009.


I think this is a tough scenario and there is not really a way for Texas to win. But I think them letting Amazon dictate the tax laws in the state is good way for them to get beat even worse than losing the jobs from Amazon moving.
 

30ashopper

SoWal Insider
Apr 30, 2008
6,845
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Right here!
This is an easy call for me here in our state. The state of Florida has been kicking around legislation for years aimed at forcing internet retailers to charge sales tax on purchases made by residents. Since the sales tax is Florida's 'bread and butter' source of income, without it we'd be forced into considering other forms of taxation. (Progressives would no doubt suggest an income tax.) If I had to chose between modernizing our consumption based tax system or implementing a progressive income tax, I'd definitely take the former and keep our more libertarian solution intact.

As tar as Texas goes, I really don't know. Such a huge state with natural resources like farming and oil, and they have an income tax.. I'm amazed they think a few million from Amazon will make a difference. Sounds like they need to get their fiscal house in order.
 
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Miss Kitty

Meow
Jun 10, 2005
47,011
1,131
71
This is an easy call for me here in our state. The state of Florida has been kicking around legislation for years aimed at forcing internet retailers to charge sales tax on purchases made by residents. Since the sales tax is Florida's 'bread and butter' source of income, without it we'd be forced into considering other forms of taxation. (Progressives would no doubt suggest an income tax.) If I had to chose between modernizing our consumption based tax system or implementing a progressive income tax, I'd definitely take the former and keep our more libertarian solution intact.

As tar as Texas goes, I really don't know. Such a huge state with natural resources like farming and oil, and they have an income tax.. I'm amazed they think a few million from Amazon will make a difference. Sounds like they need to get their fiscal house in order.

NO state income tax here....just sky high property taxes! :wave:
 

30ashopper

SoWal Insider
Apr 30, 2008
6,845
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Right here!
NO state income tax here....just sky high property taxes! :wave:

Ah, well that explains their interest in sales tax collections.

That's good to know, if someday things go south in Florida I'll buy a ranch in Texas!
 
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Here4Good

Beach Fanatic
Jul 10, 2006
1,264
529
Point Washington
The law already exists that requires online retailers to collect sales tax in the states where they have a brick and mortar presence - this is why, for example, if you buy from Pottery Barn online in Florida, you pay sales tax.

Amazon is trying to pretend they don't have a presence in Texas - it's a technicality. I am quite sure that if a Texan buys a Dell computer online, they pay sales tax, since Dell is in Texas.

The issue here is not sales tax on internet purchases, it's how far a state will bend backwards to keep jobs in their state - will they let a company clearly circumvent existing laws, just to keep some jobs?
 

futurebeachbum

Beach Fanatic
Jul 11, 2005
1,100
375
70
Snellsburg, GA
www.myfloridacottage.com
Most states require purchasers to file 'use' tax payments on goods purchased by the ultimate consumer when there is no sales tax paid on it. In my business I have employees in several states and we have to track what they buy for the company (as opposed to for resale to our customers) and where such purchases are delivered so that we can pay the appropriate use taxes.

The law here in Georgia applies to individuals as well as companies.

Consumer?s use tax is a complement to the state and local sales tax. Consumer?s use tax is due only if the state and/or local sales tax was not paid. It is imposed at the same rate and on the same transactions as the sales tax. If the local sales tax is not properly paid on the original purchase of tangible personal property, the local consumer?s use tax is owed.

In the past Georgia hasn't pursued individuals for this tax (except in the case of new cars, boats, planes, etc..purchased in another state but initially registered here.) They even tried to force it on consumer-to-consumer used car sales about 10 years ago and that didn't go well.

I'd be surprised if Texas doesn't have similar use tax laws.

It seems that no state really goes after consumers for use tax but I expect that will change over the next few years. Computerization makes it reasonably easy to track that information now.
 

Mango

SoWal Insider
Apr 7, 2006
9,699
1,368
New York/ Santa Rosa Beach
They must be trying to make as much money as possible by acting like airlines because everytime I put something in my cart, then research it further, they increase the price. I've never had this happen before. :cuss:

Due yourself a favor, bookmark the link, then go back and buy. Do not add to your cart and make sure you do not allow cookies.
 
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