Amazon.com and state sales tax

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jeffysdad
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Amazon.com and state sales tax

Postby jeffysdad » Fri Apr 27, 2012 1:53 pm

I just read that Amazon and Texas have reached an agreement for the online retailer to begin collecting sales tax beginning July 1.

Does anyone know more about this and how it will work? Does Amazon collect sales tax in your state? If so, do you notice any difference in their pricing since they started (i.e., lower prices to compete with brick and mortar in light of tax)?

I'm withholding renewal of my Prime membership until I see how this plays out. Over the last 10-12 years I've spent thousands with Amazon. I hope they do something to counter the effect of Texas' 8.25% sales tax.
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DavidNY
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Postby DavidNY » Fri Apr 27, 2012 2:23 pm

Very familiar with this since they collect ~8% sales tax in NY.
If you buy a product and it is delivered from an Amazon.com warehouse, sales tax applies.
If it is a Amazon marketplace scenario, sales tax may or may not apply.
Depending on the item I check eBay, Google, etc. before buying at Amazon.

If you buy a LOT of stuff at Amazon, Prime is a good option, as is using the Citibank Forward card.

JCarter
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Postby JCarter » Fri Apr 27, 2012 6:45 pm

Use Earth Class Mail, have the products shipped to Oregon and then forwarded to you.

432521
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Postby 432521 » Sun Apr 29, 2012 2:52 pm

Guess that means my amazon purchases will be slowing down. The main reason why I usually shopped there was because of the no sales tax
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Postby Money card » Sun Apr 29, 2012 8:10 pm

[quote="432521"]Guess that means my amazon purchases will be slowing down.

This makes me happy!

2percentPlus
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Postby 2percentPlus » Sun Apr 29, 2012 8:12 pm

Sales tax only charged in states where Amazon has nexus

ivotedale
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Postby ivotedale » Mon Apr 30, 2012 12:20 am

Definitely feel for you guys who have to pay taxes for certain online outlets- I definitely couldn't see myself purchasing a $1200+ macbook pro off Amazon.com w/ sales tax. The money saved on taxes could certainly pay for memory upgrades or similar! Fortunately Arizona doesn't qualify for that.

Seldom do I shop on Amazon.com anyway, but I'm more of an eBay kind of guy (even more tempting!).
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DoingHomework
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Postby DoingHomework » Mon Apr 30, 2012 11:36 am

JCarter wrote:Use Earth Class Mail, have the products shipped to Oregon and then forwarded to you.


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.

DoingHomework
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Postby DoingHomework » Mon Apr 30, 2012 11:43 am

ivotedale wrote:Definitely feel for you guys who have to pay taxes for certain online outlets- I definitely couldn't see myself purchasing a $1200+ macbook pro off Amazon.com w/ sales tax. The money saved on taxes could certainly pay for memory upgrades or similar! Fortunately Arizona doesn't qualify for that.

Seldom do I shop on Amazon.com anyway, but I'm more of an eBay kind of guy (even more tempting!).


Um...you do pay sales taxes in Arizona on Amazon purchases. If Amazon or any other online merchant does not charge you sales tax for some reason then you are legally obligated to report the transaction and send the money directly to the state.

Yeah, I know, who's gonna do that? Let's see, in a few years when the state get a hold of the transaction records and starts coming after people for the taxes, interest, and penalties as an alternative to prison...I think a lot of people will pay. Remember, everything you do online is immortalized forever. And if they don't pay it just means more business for the private prisons that make huge contributions to Arizona politicians of both parties. That's what we call a win-win for the state!

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Postby ivotedale » Mon Apr 30, 2012 12:31 pm

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:

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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.
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