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Amazon now Charging Tax!


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Posted on Oct 16, 2012 7:04:34 PM PDT
so what is the point of buying from Amazon, in that case you can just go to the store and buy the item and have it right away with out waiting to receive it, i buy stuff from them because i save on tax and i'm willing to wait for the item...

In reply to an earlier post on Oct 16, 2012 7:50:13 PM PDT
Last edited by the author on Oct 16, 2012 7:54:09 PM PDT
This is completely incorrect. In fact, this entire time, you were legally required to report your purchases from out-of-state retailers and pay a use tax if those retailers did not collect sales tax. (It should have been included as part of your state income tax filing each year.) You may have been unaware that you were evading your legal tax responsibility, but that's exactly what you were doing.

All of the following is quoted directly from the California State Board of Equalization website:

Use Tax Basics

California's sales tax generally applies to the sale of merchandise, including vehicles, in the state. California's use tax applies to the use, storage, or other consumption of those same kinds of items in the state. Generally, if sales tax would apply when you buy physical merchandise in California, use tax applies when you make a similar purchase without tax from a business located outside the state. For example, you would owe use tax when:

* You purchase something from a mail order catalog, the Internet, an online auction, television shopping network, etc. located outside California and you don't pay tax to that retailer.
* You withdraw taxable merchandise from your business's resale inventory and use it for your personal or business use.
* You purchase vehicles, vessels, mobile homes, and aircraft from sellers who do not hold seller's permits.

The California use tax is generally the liability of the purchaser and must be paid either directly to the seller from whom the physical merchandise was purchased or directly to the Board of Equalization (BOE) if the retailer is not required to collect and report California tax.

Use tax is not new. The California use tax law became effective on July 1, 1935.

The use tax is intended to protect California sellers who otherwise would be at a competitive disadvantage when out-of-state sellers make sales of goods to California customers without charging tax. The use tax also assures that all consumers in the state contribute fairly to the funding of state and local programs whether they choose to make purchases in California or outside the state.

How to Report and Pay Use Tax (Individual)

The easiest way to pay use tax is to report it on your California Income Tax Return found at www.ftb.ca.gov. Follow the instructions included with your income tax return. Complete the worksheet included in those instructions to determine the amount of your use tax liability.

However, you may choose to report and pay use tax directly to the Board of Equalization (BOE). Simply use electronic registration (eReg) to report and pay the tax due.

In reply to an earlier post on Oct 16, 2012 7:53:43 PM PDT
Well, I still purchase plenty from Amazon. The point is that it's convenient and often cheaper than brick-and-mortar, even when paying the legally required sales tax.

Posted on Oct 17, 2012 3:04:18 AM PDT
MikeT says:
If your only reason for buying on Amazon (or any online retailer) is simply to avoid the tax, then yes there is little reason to not buy from local retailers once your state really starts to enforce out of state sales tax collection. But I think many use Amazon type services for many reasons other than just lower prices (including sales tax).

There are numerous reasons to still shop online, sales tax or not. It's quick, easy, simple, product reviews & ratings (both professional and consumer), large selection, almost always in stock, side by side product comparisons, convenient, and yes..... often overall lower cost.

Convenience is a BIG one for me cuz I'm just not a retail shopper, not my thing. I know many like to just meander through stores and malls for no apparent reason, just killing time I guess. I've often purchased items online knowing the same item is available at a local store for the same or even lower price. But I prefer to "click & ship" rather than drive to the local store, park, find the item, wait to check out, deal with morons (customers & store employees), drive back home....

Posted on Oct 17, 2012 6:02:05 AM PDT
Last edited by the author on Oct 17, 2012 6:16:15 AM PDT
I'll still continue purchasing from Amazon. A lot of books and movies and music I'm interested in are old and I have a hard time trying to find them locally. I've been able to purchase them thanks to Amazon's Marketplace sellers.

Posted on Oct 17, 2012 6:10:21 AM PDT
paper tiger says:
O yeah, nothing will stop me from continuing to purchase from Amazon. They still have great pricing as compaired to other online and even department stores and I love the option to easily purchase from a 3rd Pary Seller.

Posted on Oct 17, 2012 6:35:29 AM PDT
bernie says:
I do not mind if Amazon pulls all its facilities from TX. I can wait a littl longer in exchange of collecting TAX.

In reply to an earlier post on Oct 17, 2012 6:42:58 AM PDT
Larry Heller says:
I live in CA and I too was taxed. And if this is the new policy I will have to move
my Blu Ray/dvd spending back to deepdiscount.

Posted on Oct 18, 2012 2:57:24 PM PDT
EpicLoots says:
Amazon shopper here in Southern California, my only reason shopping at amzon all these years was BECAUSE it was tax free and convenience. But I dont know now, thxs amzon!!! Im sure I can find better deals elsewhere if I have to pay tax. Bye amzon.

In reply to an earlier post on Oct 18, 2012 5:35:44 PM PDT
Amazon didn't have much choice in the matter.

Posted on Oct 18, 2012 5:46:49 PM PDT
mjc0961 says:
Boo hoo. Welcome to 2008, which is when those of us here in New York started paying the sales tax here.

And I said good when they did it. Saved me the trouble of having to answer a bunch of questions on my tax returns. Instead of saying that I have made untaxed online purchases and having to figure out all their BS about how much I owe from that, I just say that yes I paid all my taxes (because I did) and go about my way.

And those of you who weren't claiming your taxes, shame on you. You're part of the reason why the economy is currently in the toilet.

In reply to an earlier post on Oct 18, 2012 9:55:10 PM PDT
[Deleted by the author on Oct 21, 2012 4:40:19 AM PDT]

In reply to an earlier post on Oct 18, 2012 9:59:42 PM PDT
Very telling. You can no longer claim ignorance of your legal responsibility, but you're fine with trying to discover new ways to avoid it. Thanks for being a part of the problem, not the solution.

In reply to an earlier post on Oct 18, 2012 10:05:05 PM PDT
[Deleted by the author on Oct 22, 2012 2:17:27 PM PDT]

In reply to an earlier post on Oct 18, 2012 10:06:21 PM PDT
Good for you. A proud outsourcer.

In reply to an earlier post on Oct 19, 2012 12:46:07 AM PDT
Georgedc says:
Amazon is an American Company who sells globally just like walmart and apple. All profits come back to Amazon-USA.

:)

In reply to an earlier post on Oct 19, 2012 5:30:51 AM PDT
Last edited by the author on Oct 19, 2012 5:31:46 AM PDT
Yeah, those are American workers in the Amazon warehouses of Canada and the UK, lol.

You're still deliberately evading your tax responsibility.

In reply to an earlier post on Oct 19, 2012 7:34:41 AM PDT
George, you are not aware of how the world economy works. If Amazon USA ships internationally, they keep the profits, but there is no reason for Amazon-UK, Germany, etc to move their operating profits to the US. Those monies would be heavily taxed. The Amazon companies would operate under their own financial umbrellas as much as possible.

Posted on Oct 19, 2012 2:22:22 PM PDT
HAH1108 says:
I live in Indiana (they will start charging tax Jan. 1) and I noticed someone said it has to do with the economy and recession. I have to disagree because Indiana is a state that has a surplus in the budget. Sales tax is not needed, its more jobs!

In reply to an earlier post on Oct 19, 2012 2:26:46 PM PDT
Georgedc says:
For example, yesterday i bought these 2 blu rays at amazon:

The Skin I Live in (Two-Disc Blu-ray/DVD Combo)

Drive (+ UltraViolet Digital Copy) [Blu-ray]

I bought them both from 3rd party sellers located outside CA for almost half off the direct amazon price and guess what? NO TAX!! :)

I currently have "Downfall" , "Maria full of Grace", and "IP Man2" blu rays in my Amazon UK cart because it's cheaper there even with shipping and NO VAT nor in-state tax AGAIN! :)

BTW: Canadians are people too even if the brits are not!

Amazon = USA = #1 = :)

God Bless America! ( and NO TAXES)

cherrio babe!

Posted on Oct 20, 2012 3:29:20 PM PDT
R. Dodolak says:
I hate to be the one to break the bad news to you Larry but even if you moved your "Blu Ray/dvd spending back to deepdiscount" you'd still be charged CA sales tax. DeepDiscount now collects CA sales tax not to mention their prices usually aren't that great.

In reply to an earlier post on Oct 21, 2012 4:40:54 AM PDT
Georgedc says:
you can continue buying blu rays at amazon from 3rd party sellers located outside CA to avoid in state sales tax.

Posted on Oct 21, 2012 6:22:26 AM PDT
A. Salcido says:
Why pay tax if you are not required to pay? If a retailer has no physical presence in your state (neither a sales force, nor a retail outlet) said state cannot charge you tax (Quill Corp v. North Dakota). It is a bit troublesome that people on this board can preach to you about paying 'your fair share'. What about the state's responsibility with the proper allocation of your money?

Living in Illinois has been interesting politically, to say the least! I cannot trust our elected officials when corruption and rampant patronage is the norm. They raised the state tax by 66% and Illinois is still swimming in red ink. So much for raising taxes to solve this states budget woes.

In reply to an earlier post on Oct 21, 2012 1:35:18 PM PDT
bfore13 says:
"Why pay tax if you are not required to pay?"

By law, you are required to pay state tax. Just because the retailer doesn't charge you automatically when you checkout doesn't mean you're not required to pay it.

In reply to an earlier post on Oct 21, 2012 3:42:10 PM PDT
A. Salcido says:
Please re-read my post. With Quill Corp v. North Dakota, the US Supreme Court ruled that you did NOT have to pay state sales tax if the retailer has no sales force nor retail outlet.
I pay my state income tax, but not interstate sales tax that falls under the SCOTUS ruling. If you were correct, Amazon would be collecting this tax as they do in California and other states. The Marketplace Equity Act is not law yet, but when it is a law i will pay this sales tax.
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Discussion in:  Blu-ray forum
Participants:  270
Total posts:  738
Initial post:  Sep 1, 2012
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