California Now Has a Tax for Purchases on Amazon

July 2, 2011 by BreakTheSilence  
Published in Online

They days of buying items on Amazon without tax are done, at least for California.

California is the first state to sign the so-called ” Amazon Tax” that will allow Amazon to start collecting taxes from online transactions. Amazon says they will stand their ground on this decision, a decision some call ” unconsitutional and conterproductive.” Amazon did in fact warn their customers of the changes takeing place. Before this tax was introduced Amazon was proctected by a U.S. supreme court ruling from 1992, which states that companys cannot include taxes where they do not physically exist. For example- Amazon has office buildings in Kansas, Kentucky, New York, North Dakota, and Washington, therefore they can tax the people in those specific states. 

Amazon has cut their ties with affiliates in Texas, Illinois, Colorado, Hawaii, North Carolina, Rhode Island, and Connecticut. This does not mean people can’t purchase from the Amazon store anymore, it just means owners affiliated with Amazon do not get a portion of the sales from Amazon. This means less revenue for the businesses and less taxes for the state.

For people in Calirfornia the only convinence of shopping on Amazon is the fact that you don’t have to leave your seat to make purchases. You might as well go to the store and buy your product, because either way you will be taxed. 

Just to be clear, it is possible for any other states to be taxed for their purchases as long as an Amazon office or warehouse is built somewhere in the state, and with the ever growing popularity of buying online we might see a huge increase of states jumping on the same train.

Liked it

Tell us what you're thinking...

comments powered by Disqus