Amazon Tax

[Davc]

Some states don't have a sales tax.

In our parts some (transplants) would like to institute one so we can have a third leg to the "stool".

Then there are those of us who feel there's to much "stool" coming out of Salem as it is.

[joanmcq]

Or these businesses will find a new platform to sell their goods. Someone will introduce an Amazon-like marketplace for these vendors to go...Etsy anyone? And the marketplace will continue, but Amazon will no longer be selling used books, DVDs, & other items. And that will be Amazon's loss, not the marketplace's.

[Gary2]

Or these businesses will find a new platform to sell their goods. Someone will introduce an Amazon-like marketplace for these vendors to go...Etsy anyone? And the marketplace will continue, but Amazon will no longer be selling used books, DVDs, & other items. And that will be Amazon's loss, not the marketplace's.

Such places already exist, and have existed for years. I've used half.com (now part of eBay, but with different terms), Barnes & Noble has affiliates listing used books, and so on.

[Corduroy Frog]

Tennessee

Governor Phil Bredeson (Dem) arranged with Amazon that they build two distribution facilities in exchange for a not-to-pursue-sales-tax agreement. It is not unusual for governments to exempt large companies wishing to locate in states and localities. Tennessee often competes with Kentucky and Georgia, also known for negotiating liberal tax giveaways.

Thing about it, these facilities now create a physical presence in the state. Bredeson's term is now expired and certain members of the state legislature feel like they can "revisit" this arrangement and renig on the deal. The new governor, Bill Haslam, a typical pro-business Republican, has not made his position known, but is doubtful will pursue. It is perceived that if the state renigs Amazon will close up shop and relocate somewhere else.

[joanmcq]

Exactly. And since Barnes & Noble's has brick & mortar stores in many states (like CA & NY) they will easily get the vendors who are in those states, since they have to charge sales tax anyways. I love Amazon, if for nothing else the breadth of stock they have in books & music (that's all I've bought from them), but this is going to be a losing battle. They will end up only having affiliates in either the few states that don't charge sales tax or that don't pass such a law. So many states are pursuing this that it is not like many small bizs are going to pick up and move just to sell on Amazon.

[veritas]

While there are third party vendors

who sell through Amazon what we are taling about are affiliates who are paid a commission by sales generated through their website to Amazon.

The supreme court has ruled that there must be a physical presence in order for the state to impose the sales tax collection.

Some states think they can sneak around this by saying that since the affiliate has presence Amazon has a presence.

They are fighting this with New York which will end up in the Supreme court.,

In the meantime the affiliates can easily pickup and move leaving/taking thousands of jobs with them. So then the state will loose the income tax they had collected.