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-   -   Taxing of Internet Purchases (http://74.208.121.111/LoT/showthread.php?t=11168)

RStar 07-04-2011 09:53 AM

Although I know this law only seeks to enforce the law already in place, I am against it. So, no, I have not ever place any figure into the line 95. Californians are over taxed already.

Kevy Baby 07-04-2011 09:55 AM

Quote:

Originally Posted by Alex (Post 349141)
I'm still curious, as we descend into the technical requirements of following this new law, if anybody here has ever reported and paid the use tax on Amazon purchases as required on line 95 of the 540?

Nope. And i know it is a wee bit hypocritical of me.

Chernabog 07-04-2011 10:24 AM

Quote:

Originally Posted by Ghoulish Delight (Post 349134)
Yes, it's a subsidiary. What's your point?

More or less what CP wrote - I'm sure Amazon's attorneys analyzed the law in relation to Quill v. North Dakota (which I really should get around to reading, lol), and are advising that while the "affiliates" portion of the law is going to be difficult to get around, Amazon has a chance of winning on the "subsidiaries" issue. Hence, they cut all ties to CA affiliates and are not collecting sales tax in CA right now.

I'm not sure who reports the sales tax on their CA forms, though everything I've read states that it is nigh impossible to enforce. Personally I pay plenty of sales tax, which is ridiculously high even after the expiration of the 2-year temporary increase. It is a fundamental philosophic problem, I suppose, that Dems see tax increases as equaling more revenue. Raising taxes actually drives businesses and jobs away, thus leading to lower income taxes overall and a greater burden on the CA economy due to the unemployed.

Again, Best Buy and Target need to lower their prices to compete, plain and simple. When books, cell phones, movies, electronics and groceries are cheaper to buy on the internet (even WITH the sales tax added), Best Buy and Target need to step it up. The only thing going for the brick and mortar stores are the convenience of having the item NOW, and people will pay a few extra dollars for that. But a FEW extra dollars, not like $10-12 more for a blu-ray, or $100 extra for a television.

alphabassettgrrl 07-04-2011 02:12 PM

It has to be a pretty hefty discount or not available for me to buy online. I much rather pick it up in a real store. And I'm willing to pay a bit more. Just like I'd rather pay more than shop at Wal-Mart.

Even though ordering online generally avoids paying sales tax.

Kevy Baby 07-04-2011 03:01 PM

Quote:

Originally Posted by Chernabog (Post 349149)
Again, Best Buy and Target need to lower their prices to compete, plain and simple. When books, cell phones, movies, electronics and groceries are cheaper to buy on the internet (even WITH the sales tax added), Best Buy and Target need to step it up. The only thing going for the brick and mortar stores are the convenience of having the item NOW, and people will pay a few extra dollars for that. But a FEW extra dollars, not like $10-12 more for a blu-ray, or $100 extra for a television.

I disagree with this, purely on the basis that Target and Best Buy don't seem to be hurting. While they may not be getting your Blu Ray business, they are obviously selling quite a number of them

Frikitiki 07-04-2011 03:19 PM

In Hawaii the legislature attempted to do this two years ago. amazon cut ties before it was even a law. In Hawaii we also have a tax called a USE TAX. If I bring something into Hawaii, I'm supposed to pay a 4% tax to the State of Hawaii. They already have a law on the books, but they don't enforce it (unless you buy a car on the mainland and have it shipped in). Instead of trying to enforce the law on the citizens, they are trying to cut down the number of touchpoints and force the businesses to collect the money making their job easier.

Chernabog 07-04-2011 04:09 PM

Quote:

Originally Posted by Kevy Baby (Post 349159)
I disagree with this, purely on the basis that Target and Best Buy don't seem to be hurting. While they may not be getting your Blu Ray business, they are obviously selling quite a number of them

According to them they are hurting (or, at least that overall sales are down)-- which is the reason for this law being passed in the first place. Their argument essentially is that anyone buying off of the internet gets an automatic discount because they don't pay sales tax, and that they simply cannot compete with that. I think that's a load of BS.

Certain items are keeping them going -- people generally want to buy an iPad or a smartphone from a brick-and-mortar store, for instance, or if they HAVE to get a video game on release date they'll reserve it at Best Buy or Gamestop rather than wait for mail delivery. See i.e. the article below:

http://www.startribune.com/business/123809429.html

Alex 07-04-2011 04:21 PM

So you disagree that it is a disadvantage (regardless of whether it is surmountable) that California businesses (big box store or small mom and pop), all other things being equal, have to charge 10% more for the exact same item than an online retailer?

What if, instead of requiring Amazon to collect the use tax directly, the law instead said that Amazon (and other reatailers) would have to provide (ignoring the question of Quill) to California a 1099 equivalent reporting how much each Californian spent at their web site so as to enable California to effectively enforce the already existing use tax law?

Is this aspect of sales tax similar to how we tend to feel about speed limits. We're ok with the limit being the law, with someone occasionally getting slapped for breaking that law, but it would be viewed as horribly unfair if a way was found to actually give people a ticket every time they actually exceeded the limit.

Morrigoon 07-06-2011 01:44 PM

See I view the no tax thing as just helping to defray the cost of shipping. Now obviously there's that thing where you spend over X amount and get free shipping, but I guess I always figured shipping and tax cancelled each other out, so the internet, for me, competes mainly on base price of the item.

Ghoulish Delight 07-06-2011 01:48 PM

Quote:

Originally Posted by Morrigoon (Post 349211)
See I view the no tax thing as just helping to defray the cost of shipping. Now obviously there's that thing where you spend over X amount and get free shipping, but I guess I always figured shipping and tax cancelled each other out, so the internet, for me, competes mainly on base price of the item.

Except in a physical store, the shipping cost is just built into the price of the item.


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