Amazon.com and state sales tax

A place to discuss anything... except credit cards!
16 posts
FutureBillionaire
Centurion Member
Centurion Member
 
Posts: 1589
Joined: Sun Jun 19, 2011 2:37 pm
Location: Down South

Postby FutureBillionaire » Mon Apr 30, 2012 4:55 pm

They are about to start charging in TN. My amazon purchases will slow down as well. I'm not a happy camper.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape


JCarter
Centurion Member
Centurion Member
 
Posts: 323
Joined: Thu Mar 15, 2012 10:40 pm
Location: Virginia

Postby JCarter » Mon Apr 30, 2012 11:28 pm

DoingHomework wrote:That doesn't work. You still have to pay use taxes which are almost always the same rate as sales tax. Unless you are suggesting people commit tax evasion. Nah, I know you wouldn't suggest that.


Tax evasion? How so, he is not paying the taxes upon purchase but deferring the payment until tax time. That is not tax evasion, as he still has an obligation to pay at the end of the quarter/year.

DoingHomework
Centurion Member
Centurion Member
 
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

Postby DoingHomework » Tue May 01, 2012 4:52 pm

ivotedale wrote:Highly interesting- perhaps I meant there is no automatic addition of sales tax upon checkout.

I recently ordered a point-and-shoot camera from Amazon not too long ago, and was not charged sales tax via the seller (Nashville, TN) or Amazon. I did read up on the subject in regards to AZ, and found this:

Search Results

So yes, one would be obligated to report sales tax if none was applied in an online order.

I'm not one to avoid paying my state's taxes, but by what means will they stop everyone in the state? Or what of those who pay with, for example, visa gift cards or similar? It would be insanely difficult to track those individuals down.


Hmm, when I bought something on Amazon this morning sales tax was applied for both Arizona and my county. I think something you said in your message is key: You said the order was from a merchant in Nashville operating through Amazon. I suspect that the automatic sales tax is only for items fulfilled through Amazon. The other thing is, doesn't Amazon have a warehouse in Glendale? That gives them a nexus here.

As for you you pay it, well, when you filled out your state tax forms this year there was a line where you had to report purchase on which you did not pay sales tax. If you intentionally failed to report what you bought then you committed a crime. Right now they have no way to know. But what happens 5 years from now when Amazon settles with the State of Arizona and hands over records of all sales into Arizona for 2011 and the state mines the file and finds that you failed to report and pay taxes on something? They could go after you for the amount, penalties, and interest.

It's not something I am worried about. But it is technically VERY easy to do right now. And while our esteemed legislators are opposed to any kind of tax increases, they are not opposed to tax collection! I have no doubt this kind of thing will start happening in a couple of years. It will start with voluntary compliance (which is already being done). The next step will be amnesty. Then they'll mop up the rest with a few high profile convictions of regular folks.

DoingHomework
Centurion Member
Centurion Member
 
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

Postby DoingHomework » Tue May 01, 2012 4:57 pm

JCarter wrote:Tax evasion? How so, he is not paying the taxes upon purchase but deferring the payment until tax time. That is not tax evasion, as he still has an obligation to pay at the end of the quarter/year.


Perhaps I misunderstood. In Arizona we now have to pay sales tax at the time of purchase. If we don't then we have to declare and pay the taxes on our state tax return the following year. If one makes the declaration then it is not tax evasion.

What I meant was that having something shipped to an out of state address then reshipped into the state does not eliminate the need to pay sales taxes so it is pointless. But if one fails to report the purchase it is then (state) tax evasion.

Trust me, I think it sucks! But I comply because it would simply be very easy to track down some of the people buying online and avoiding taxes and then collecting from them.

JCarter
Centurion Member
Centurion Member
 
Posts: 323
Joined: Thu Mar 15, 2012 10:40 pm
Location: Virginia

Postby JCarter » Tue May 08, 2012 8:51 pm

DoingHomework wrote:Perhaps I misunderstood. In Arizona we now have to pay sales tax at the time of purchase. If we don't then we have to declare and pay the taxes on our state tax return the following year. If one makes the declaration then it is not tax evasion.

What I meant was that having something shipped to an out of state address then reshipped into the state does not eliminate the need to pay sales taxes so it is pointless. But if one fails to report the purchase it is then (state) tax evasion.

Trust me, I think it sucks! But I comply because it would simply be very easy to track down some of the people buying online and avoiding taxes and then collecting from them.


It is not tax evasion, but tax fraud. You're then filing a return which you knowingly omit information of direct benefit to the state concerning your filings.

Celestine
Centurion Member
Centurion Member
 
Posts: 152
Joined: Tue Jan 10, 2012 1:02 am
Location: Los Angeles, California

Postby Celestine » Tue May 08, 2012 9:14 pm

Getting charged a sales tax is like nothing to me or not bothered with it. At least you get to see where it goes - fixing roads, maintaining parks, etc. Wait till you live in a different country where you don't know where your tax is going. Been there... done that...

It is still better here in the U.S. regarding getting your tax's worth.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln



Return to “The Lounge”

Who is online

Users browsing this forum: No registered users and 0 guests