sigh...taxes

[ronocnikral]

Dave Clark, Amazon's vice president of operations, writes in the e-mail that the center will close April 12 due to Texas' "unfavorable regulatory climate." Amazon spokeswoman Mary Osako would not say Thursday how many employees work at the Irving distribution center.

APNewsBreak: Amazon closing TX center amid dispute - Yahoo! News

Before you become unglued and get on your soapbox, it is interesting that Amazon may be playing be the rules. I'm not sure and I have no intention of translating the legalese. Either way, let more broad sweeping laws come forth.

Amazon argues that this distribution center, owned by Amazon.com KYDC LLC, located at the same address as Amazon's corporate headquarters in Seattle, is a legally separate entity and thus does not establish a physical presence in Texas that would require Amazon to collect sales taxes.

Amazon.com - Wikipedia, the free encyclopedia

Texas bills Amazon for millions in sales taxes | Dallas-Fort Worth Business News - News for Dallas, Texas - The Dallas Morning News

One thing is for sure, if Amazon pulls out of TX, TX families are hurt.

[groovyone]

Not to mention my amazingly fast shipping times!

[zachary]

taxes

[XtremePhoto]

Just a good reason to NOT use Amazon in the future. They should be collecting and remitting just like every other business in Texas. I won't be using them.

-G-

[Nocturnus]

My understand is, even online sales, taxes need to be paid. I was reading some comments on the Yahoo link. I mean, Walmart collects tax on onlines sales because they have locations in Texas, so we pay tax. Amazon should be doing the same thing. Collecting taxes, though I don't know if they should be going to Texas or the state that Amazon has their HQ in.

Glenn, how do you feel about the online services like MPIX and the like? Lot of online places do not collect sales tax to pay to the state they are located in.

Will you still order from B&H or Adorama?

[XtremePhoto]

Originally Posted by Nocturnus

My understand is, even online sales, taxes need to be paid. I was reading some comments on the Yahoo link. I mean, Walmart collects tax on onlines sales because they have locations in Texas, so we pay tax. Amazon should be doing the same thing. Collecting taxes, though I don't know if they should be going to Texas or the state that Amazon has their HQ in.

Glenn, how do you feel about the online services like MPIX and the like? Lot of online places do not collect sales tax to pay to the state they are located in.

Will you still order from B&H or Adorama?

Don't use B & H very often at all, and have never used Adorama. I like to see, feel and check things out and buy most of what I get from a store that I can pick it up from.

I just think it is pretty sorry for Amazon to try and get out of having to follow the law when other online retailers follow it. If they didn't want to collect and remit sales tax, they shouldn't have put an outlet in the State of Texas. Plain and simple. I hope Texas gets every penny of that which is owed them. I don't like taxes anymore than the next guy, but I pay them, it is a fact of life in the US of A and won't go away anytime in the future.

-G-

[Nocturnus]

I was just using those two as generic examples since most online stores don't collect taxes for the state they are located in.

[ronocnikral]

Originally Posted by Nocturnus

My understand is, even online sales, taxes need to be paid. I was reading some comments on the Yahoo link. I mean, Walmart collects tax on onlines sales because they have locations in Texas, so we pay tax. Amazon should be doing the same thing. Collecting taxes, though I don't know if they should be going to Texas or the state that Amazon has their HQ in.

Glenn, how do you feel about the online services like MPIX and the like? Lot of online places do not collect sales tax to pay to the state they are located in.

Will you still order from B&H or Adorama?

amazon claims they do not have to do this, b/c they have setup different corporations. i don't know the legal end of this, but it could be legal. in which case a "patch" will most likely be expedited into law. it could also be against the law.

you only have collect sales tax in the state which you have a nexus in. amazon claims their fulfillment warehouse corporation is not a nexus for their website corporation which only has one office, in seattle. the details of the corporate law are and will remain a mystery to me unless someone here offers up a clif notes version.

careful taking advice from yahoo comments.

[XtremePhoto]

Originally Posted by ronocnikral

amazon claims they do not have to do this, b/c they have setup different corporations. i don't know the legal end of this, but it could be legal. in which case a "patch" will most likely be expedited into law. it could also be against the law.

you only have collect sales tax in the state which you have a nexus in. amazon claims their fulfillment warehouse corporation is not a nexus for their website corporation which only has one office, in seattle. the details of the corporate law are and will remain a mystery to me unless someone here offers up a clif notes version.

careful taking advice from yahoo comments.

Very true. But I think like you...a change is coming and I don't think any of the online companies will like it. There is too much revenue (when it is lacking) to be made by States.

-G-

[ronocnikral]

regardless of the legalities, some people who had jobs will be without them soon.

[sldi]

The responsibility for paying taxes and collecting taxes are two different things. It is purchasing parties responsibility to pay the taxes, even if the selling party doesn't collect. Certain tax laws describe how this comes about and a good lawyer will always work those to the benefit of his client. When a state is scrambling to make up for poor judgement in the past and looking for more revenue they will push the envelope to gain as much revenue as possible.

[Atfulldraw]

Short-sighted greed results in long term loss of jobs and the resulting economic benefits.

Brilliant, Texas.

[ronocnikral]

issues i've thought about lately...

1) if TX changes the law, does that imply amazon doesn't owe the past taxes?
2) don't sell the politicians short. methinks what they are aiming for is a deal like TN got. Not sure how many states can shake amazon down for this deal though....

Amazon is building 1 million-square-foot distribution centers in Hamilton and Bradley counties. The company plans to invest about $139 million in the centers and create more than 1,400 full-time jobs and more than 2,000 seasonal slots.

Haslam: Amazon shouldn't collect tax | Chattanooga Times Free Press

[venchka]

Interesting. I heard this on NPR recently.
Counterpoint:
An Adobe subsiderary in the corporate software business has an office in Dallas. It is my understanding that they do not cater to the public. In fact, I doubt that they have any connection to sales tax collection. I recently bought a Lightroom upgrade and paid Texas sales tax.
Go figure.

ps: I quit doing business with Amazon a year or two ago. I got a call from AMEX that Amazon had allowed charges on my card. Card closed. New card overnighted.

[SCone]

Originally Posted by Atfulldraw

Short-sighted greed results in long term loss of jobs and the resulting economic benefits.

Brilliant, Texas.

Amazon has know about this since they first opened in Texas. Choosing not to follow the rules isn't good for Texas or any other state. Supreme Court decision from 1992 says that retailers, including on-line retailers, are required to collect sales tax if they have a "physical presence" within the state where the customer resides. Amazon ackowledges they have had a physical presence in Texas for at least seven years or longer.

Texas is just getting tough on retailers that are not playing fair.