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Amazon now Charging Tax!


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In reply to an earlier post on Oct 21, 2012 4:37:50 PM PDT
Last edited by the author on Oct 21, 2012 4:41:37 PM PDT
bfore13 says:
My interpretation of that ruling is two-fold: 1) a business must have a physical presence in a state for that state to require it to collect sales taxes and 2) lack of a physical presence in a state is sufficient grounds to exempt a corporation from having to pay sales and use taxes to a state. Both of these have to do with the corporation's requirement to collect and/or pay state taxes. However, it doesn't speak to the individual's requirement to claim online purchases that would otherwise be subject to sales tax on your state tax return and pay a use tax. You are required to pay said use tax even if the online merchant doesn't collect it.

In reply to an earlier post on Oct 22, 2012 5:22:11 AM PDT
A. Salcido says:
To bfore13:
Thank you for your thoughful response! I will research more as to how the SCOTUS ruling applies to the individual. Once I find a reference I will post back.

In reply to an earlier post on Oct 22, 2012 2:18:32 PM PDT
Georgedc says:
I often purchase from amazon-canada and amazon-uk too. They automatically take off the VAT tax and again no in-state taxes for my purchases outside the country.

:)

In reply to an earlier post on Oct 22, 2012 4:36:05 PM PDT
Green Meanie says:
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In reply to an earlier post on Oct 22, 2012 5:44:45 PM PDT
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In reply to an earlier post on Oct 24, 2012 1:10:24 PM PDT
RichP says:
Have friends that bought an entire $20K home theater when they lived in NJ, they bought it in NY and had it shipped, no tax. Then 5 years later they got a tax bill from NJ for the system. NY and NJ decided to 'trade' customer purchases. Clothes are not taxed in NJ so NY'ers come over the river to buy them.

In reply to an earlier post on Oct 24, 2012 1:19:56 PM PDT
RichP says:
Boy, sounds like something right out of atlas shrugged.

Posted on Oct 30, 2012 9:03:27 AM PDT
Last edited by the author on Oct 30, 2012 9:04:31 AM PDT
JVAN says:
Amazon charges tax in your state based upon whether they have offices doing business there, not because of some change in the state's or Amazon's policy. Please tell me if you live in a state not listed here, and are being charged tax! http://www.amazon.com/b/?node=239366011

Posted on Oct 30, 2012 10:39:39 AM PDT
Since I use the Massachusetts "safe haven" for Internet purchases on the state income tax form, how do I get Amazon not to charge me tax?

In reply to an earlier post on Oct 30, 2012 11:12:19 AM PDT
warrian says:
My understanding is that it is the delivery address that determines whether or not you are taxed, not the billing address.

Posted on Oct 30, 2012 12:03:42 PM PDT
NeoHeart says:
I live in Oklahoma and I've never been charged for tax to this day. I place a order today and there's no tax on it. If amazon start charging tax, I will shop on another site.

In reply to an earlier post on Oct 30, 2012 1:01:33 PM PDT
Last edited by the author on Oct 30, 2012 1:01:57 PM PDT
I live in a state of confusion and have never have had Amazon collect taxes on my purchases.

Amazon does not charge taxes, Amazon collects taxes.

In reply to an earlier post on Oct 30, 2012 2:09:14 PM PDT
Amazon will charge tax as long as they have either an office or warehouse in your stste and your item comes from your state. Nothing you can do about that.

In reply to an earlier post on Oct 30, 2012 6:37:34 PM PDT
How does Amazon collect taxes without charging it?

In reply to an earlier post on Oct 31, 2012 4:44:44 AM PDT
bfore13 says:
The states charge the tax, they're the ones who get the tax revenue. Amazon just collects it.

Posted on Oct 31, 2012 6:01:00 AM PDT
JVAN says:
Charge/collect tax. I think everyone understands that taxes are a government based charge. We're arguing semantics and points finer than the purpose of this discussion. If you really want to beat your chest, the title of this thread is incorrect as well.

In reply to an earlier post on Nov 1, 2012 10:26:18 PM PDT
Last edited by the author on Nov 1, 2012 10:27:39 PM PDT
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In reply to an earlier post on Nov 2, 2012 12:41:55 AM PDT
Last edited by the author on Nov 2, 2012 12:44:57 AM PDT
bfore13 says:
"The states charge Amazon tax. The states collect it from Amazon."

They're not charging Amazon the tax, they're charging us the sales and use tax and requiring Amazon to collect it. For years individuals rarely paid taxes for online purchases if the e-tailer didn't collect them. The states are now requiring companies to collect the taxes if they have a physical presence. This isn't just semantics. Amazon is also getting charged corporate taxes by the states but that is different than the sales and use tax they're collecting from us.

In reply to an earlier post on Nov 2, 2012 1:54:48 AM PDT
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In reply to an earlier post on Nov 2, 2012 8:04:32 AM PDT
Last edited by the author on Nov 2, 2012 8:06:09 AM PDT
Jonathan, the cashier represents Starbucks, so as a representative of Starbucks she charged you for the coffee, as did anyone else as part of the Starbucks organization. Starbucks keeps the money and utilizes as they see fit, ie paying employees, buying indgredients, equipment or supplies, or paying their shareholders. This is not an asinine distinction, it is a legal distinction. If that cashier punched you in the face, you would be allowed to sue the cashier, Starbucks and their shareholders.

The state government charges the tax, as they are the ones deciding what the monies are to be used for. Amazon or any retailer is just required to collect the tax for them. Amazon has no say in the amount of tax charged.

In reply to an earlier post on Nov 2, 2012 2:24:47 PM PDT
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Posted on Nov 2, 2012 4:27:55 PM PDT
Okay, I do not normally want to get involved in this .. but here are the "legalities" of sales tax.
- Sales tax is the responsibility of the consumer buying the product.
- States have passed laws requiring companies who have "NEXUS" with the state to collect the tax from the consumer and remit it to the state (look up NEXUS in reference to sales tax in your state .. it is not just a physical presence that can satisfy the NEXUS test .. BUT a physical presence in a state does usually satisfy the test.
- If a seller does not satisfy NEXUS, the tax is still owed by the consumer, it just is not required to be collected by the seller (because the state does not have jurisdiction of the company to apply its laws) .. look on your state tax return or in your state tax code .. most have a place asking for you to self report what you owe .. and by signing your return and placing nothing in that box .. you have "testified" to your state that you have not made any purchases for which you owe tax (and if you get audited and the state reviews your checkbook and credit card transactions, they will "come knocking on your door" for the money, including penalties for under-reporting and interest.
- If the seller has NEXUS and they get audited and have been found NOT to have collected the tax, the state will require them to pay it .. now the end consumer actually owes it but "after the fact" this seller will have a very hard (impossible) time trying to go back and get that tax from the end consumer when the consumer already had the product/service and previously paid for it without tax.
- Here is the kicker .. I have known states (at least in the distant past) to actually have collected the same tax twice ... from the seller on an audit "after the fact" when the seller was required to collect and remit the tax but did not .. AND then if auditing the end consumer (which could be an individual or business) also collect the same sales tax from that end because they were supposed to pay it (self report it) but did not. Now if the seller would have a way to find out the tax DID get paid to the state by the consumer by audit or self reporting or the consumer, they could get that back .. though they still may have some penalties for not having collected the tax when they were required to (due to the NEXUS tests.) BUT, it is nearly impossible for either side (seller or consumer) to be able to find out if one side or the other actually paid it (at least it is not cost effective for them to track it down) so the state can double dip on the same tax through audits if things are not done properly all around.
Summarizing .. the tax is on the consumer but the state uses the seller to collect and remit the tax if the particular state has jurisdiction over the company due to the NEXUS standards/tests.

In reply to an earlier post on Nov 2, 2012 6:01:32 PM PDT
bfore13 says:
"If Amazon fails to collect, the state will still hold Amazon *financially liable* -- which is precisely the definition of "to charge".

The if is moot because they are now collecting it where required and the consumer is liable. The tax isn't costing Amazon a single cent, so they're not financially liable. If the states were charging Amazon the tax then all 50 states would be charging them and holding them financially liable regardless of whether they collect it from the consumer. That's not the case. If I buy from a 3rd party seller outside of PA, Amazon isn't collecting sales tax from me. So, is PA getting 6% of that sale from Amazon? Heck no. Amazon isn't required to collect it and it's up to me to pay it when I file my state taxes ... because I'm the one being charged.

Posted on Nov 2, 2012 6:08:03 PM PDT
Collect... Charge... Darn nerds will argue about anything these days.

In reply to an earlier post on Nov 2, 2012 7:25:31 PM PDT
We get a charge from it.
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Discussion in:  Blu-ray forum
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Initial post:  Sep 1, 2012
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