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Amazon and Web Taxes
AS MOST of the retail industry is aware, online retailers such as Amazon have been fl ying under the radar in regards to the collec- tion of state sales tax, relying on the upstanding honesty of online shoppers to declare taxable pur- chases. For nearly a decade, local brick and mortar stores have been fi ghting to level the playing fi eld, but local companies affi liated with online retailers fear rebuttal such as removal of service. In a united effort, however, California became the seventh state to adopt sale tax fairness legislation in July. And while there are many online re- tailers fi ghting to keep their tax-free transactions, Amazon continues to
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Clear 2 mil
2 x 2......$3.00 2 x 3......$3.50 2 x 4......$5.00 2 x 5......$6.00 2 x 8......$9.00 2 x 10 ....$10.00 2 x 12 ....$10.00 3 x 3......$4.50 3 x 4......$6.00 3 x 5......$7.00 3 x 8......$10.00 3 x 12 ....$12.00 3 x 20 ....$15.00
4 x 4...... $8.00 4 x 5...... $8.00 4 x 6...... $10.00 4 x 8...... $11.00 4 x 10 .... $14.00 4 x 12 .... $14.00 5 x 5...... $9.00 5 x 7...... $12.00 5 x 8...... $14.00 5 x 10 .... $18.00 6 x 4...... $10.00 6 x 6...... $16.00 6 x 8...... $16.00
6 x 9...... $18.00 6 x 10 .... $20.00 6 x 12 .... $24.00 8 x 8...... $25.00 8 x 10 .... $26.00 8 x 12 .... $28.00 9 x 12 .... $30.00 10 x 10... $28.00 10 x 12... $35.00 12 x 12... $40.00 12 x 15... $45.00 13 x 15... $50.00 13 x 18... $60.00 15 X 15... $60.00
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be the big name in the headlines. According to Institute for Lo-
cal Self-Reliance advocate, Stacy Mitchell, “Amazon’s physical pres- ence has spread to more than a dozen states, where it has built warehouses and other facilities that would normally trigger an obligation to collect sales tax.” Go- ing to great lengths to maintain a tax-free advantage by structuring its facilities as separate compa- nies or lobbying state legislatures, Amazon isn’t going to go down without a fi ght. California’s new law led to the fi ring of 10,000 or so companies and individuals who earn commissions for using their blogs and websites to funnel sales to Amazon. “The move seemed motivated purely by spite, since it will not alter Amazon’s obligation to collect California’s 7.25 percent sales tax,” notes Mitchell. As the online giant has done in
all the other combating states, it is expected that Amazon will fi le suit to block the law. Taxable online purchases are no longer an issue in New York, the fi rst state to pass a sales tax fairness law. It is a posi- tive indication that Amazon may fi nd little chance in court for an appeal. Mitchell says, “Most legal observers believe Amazon is likely to lose any lawsuit it fi les in Califor- nia. The only real question is how long Amazon’s lawsuits might keep other states waiting in the wings, and how many independent small businesses will be forced to close their doors in the meantime.” This article has been adapted
from an original piece by the Home- town Advantage Bulletin. ■
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