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Title: California enacts Internet sales tax; Amazon bolts
Source:
TDC
URL Source: http://dailycaller.com/2011/06/30/c ... ternet-sales-tax-amazon-bolts/
Published: Jul 2, 2011
Author: C.J. Ciaramella
Post Date: 2011-07-02 08:53:32 by CZ82
Keywords: None
Views: 1789
Comments: 7
California enacts Internet sales tax; Amazon bolts 12:33 AM 07/01/2011, By C.J. Ciaramella California Governor Jerry Brown signed a bill into law Wednesday requiring online businesses to collect state sales tax, calling it “a common sense idea,” but Amazon and other large online retailers said they no longer see the business sense in staying in the Golden State. Amazon and Overstock.com both announced shortly after the bill was signed that they will be closing all of their affiliate programs in California. Affiliates are small websites and businesses that sell products through sites like Amazon and receive a small commission. The new law requires online retailers with local affiliates to collect and file state sales tax on purchases made by California customers. California hopes to raise an estimated $317 million a year in new state and local government revenue through the added sales tax collections. The State Board of Equalization has estimated there are 25,000 affiliates in California — about 10,000 of them making money through Amazon. Not anymore, though. “We oppose this bill because it is unconstitutional and counterproductive,” Amazon said in an email to its affiliates. “It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.” Paul Misener, Amazon VP of Global Public Policy, said in a statement: “This legislation is counterproductive and will not cause our retail business to collect sales tax for the state.” Overstock.com, a large Utah-based online retailer, sent a similar email to its California affiliates. “We think this law is unconstitutional,” said Mark Griffin, Overstock’s general counsel, in an interview with the San Jose Mercury News. “We sent a final note to our California affiliates today. It’s a business decision that we had to make.” Supporters of the law say it is merely leveling the playing field between brick-and-mortar stores and online retailers. The Alliance for Main Street, a lobbying group which has argued for similar laws in other states, applauded the news. “The reality is this is about collection, not a tax issue,” said Danny Diaz, an Alliance for Main Street spokesperson. “All these online businesses are doing is passing the liability onto the public. The only requirement now is that they operate the same way as every other business in America does.” Of course, many of the Alliance for Main Street members aren’t exactly mom-and-pop operations. Alliance for Main Street members include many big-box retailers such as Wal-Mart, Target, Best Buy, Home Depot and Sears. The California Retailers Association chimed in as well. “We thank Governor Jerry Brown and the leaders in the California State Legislature who have demonstrated their leadership and commitment to California businesses by passing and signing e-fairness into law,” the association said in a statement. “Small and large businesses across the state have been held at a major disadvantage by the current law that out-of-state online companies like Amazon.com and Overstock.com have exploited for years. This has cost us jobs and revenues.” In 1992, the Supreme Court barred states from collecting sales taxes on businesses that did not have a presence in the state. The Court ruled that such laws amounted to regulating interstate commerce –a power granted only to the federal government. California’s new law dodges that ruling by claiming companies like Amazon have a presence through affiliates and related companies operating in the state. New York passed a similar law in 2008. Amazon is currently suing the state of New York. California is the seventh and largest state in the nation to pass such a law.
Poster Comment: Well there goes so more jobs down the toilet......
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#1. To: CZ82 (#0)
How so?
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
Business friendly Texas did the same thing.
Von Mises associates any Government involvement in markets as "Socialism" , to mislead people into thinking Government is the enemy , when infact empire is the enemy and empire is Privatized.
How so? You don't think out of state sales via internet will drop???? It's extremely easy for people to price shop via Amazon and Overstock, and people usually go for the better price, better shipping fees.... etc ..... and if the lowest price used to come from the Calif affiliates then shoppers won't have the option to buy it there anymore..... Most people don't really know/care what affiliate (small businesses)it comes from because Amazon/Overstock found it for them, and consequently buy it thru Amazon/Overstock..... I've bought many things thru Amazon but couldn't tell you what affiliate it came from.. All I remember is I had never heard of the place before buying it thru Amazon. How many other shoppers do you think remember who the affiliate was and created a link in their Favorites folder???? Consequently, don't employees usually lose their jobs/hours when sales in their companies drop????
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!!
You do know that in any state, if you purchase something and do not pay the sales tax because of the fact that the point of sale does not collect it, that you are STILL responsible for paying it?
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
And I imagine more states are contemplating doing the same thing... Whether it's the right or wrong thing to do only time will tell.....
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!!
Good luck with that..... people aren't going to "Volunteer" to pay that tax if it isn't collected at the time of sale.....
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!!
Just wait and see who suffers more...
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
Well there goes so more jobs down the toilet......
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#2. To: CZ82 (#0)
#3. To: war (#1)
Well there goes so more jobs down the toilet......
#4. To: CZ82 (#3)
You don't think out of state sales via internet will drop????
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#5. To: lucysmom (#2)
Business friendly Texas did the same thing.
#6. To: war (#4)
You do know that in any state, if you purchase something and do not pay the sales tax because of the fact that the point of sale does not collect it, that you are STILL responsible for paying it?
#7. To: CZ82 (#6)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
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