Posted on 09/23/2014 2:13:50 PM PDT by TurboZamboni
Amazon.com Inc. will begin collecting sales taxes from Minnesota customers next week, ending a cost advantage it’s enjoyed over brick-and-mortar retailers in the state.
The news also triggered a mystery.
Online-only retailers don’t need to charge sales tax in Minnesota unless they have physical presence or affiliated business here. Monday’s revelation led to speculation that Amazon may open a warehouse, data center or some other operation in the state or buy an existing firm.
The company was vague about what prompted the change, though it said it “will be required” to do so starting Oct. 1.
“We’re considering various opportunities and plan to expand in Minnesota,” Ty Rogers, an Amazon spokesman, said in an e-mail.
(Excerpt) Read more at startribune.com ...
Once they caved to Texas it was all over but the crying.
Minnesota officials have said that federal law, if passed, would net Minnesota about $400 million a year.
“...Minnesota officials have said that federal law, if passed, would net Minnesota about $400 million a year.”
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That’s assuming the Amazon sales in Minnesota would NOT be affected by adding sales tax. Sales tax will depress Amazon’s online sales in Minnesota so actually collected sales taxes will be less than they project. But Minnesota citizens will be paying more state taxes effectively.
Guess I’ll stick to Ebay for now.
Yup, my Amazon purchases have decreased considerably since they started charging sales tax in my state and the free delivery floor increased to $35. I do spend a lot of time shopping there and reading reviews before moving along to buy the product elsewhere, though.
Next the Dems here will have DOR go out to make sure garage sale people are paying taxes.
And that 5% goes to the STATES collected within, not to the Feds.
yup, this will put a dent in my amazon buys.. right in time for Christmas..
With paypal adding 180 day return windows.. well..
ebay here I come!
Also, I may re-think prime when it comes due in Dec.
Amazon agreed to collect sales tax in California starting a couple of years ago. In return, they got a good deal on opening up distribution centers. However, the best deal of all was that Amazon was allowed by California to KEEP the collected sales taxes for a period of time. Don’t recall how long but it was more than one year.
“Once they caved to Texas it was all over but the crying.”
Tell me about it. We elect REPUBLICANS for a reason, but no, Susan Puffy-Combs decides that she’ll be a “hero” and bring 100 Amazon jobs to Dallas, while saddling 20,000,000 TEXANS with sales tax.
I wonder if Wisconsin taxes Amazon purchases? I may just have to have stuff delivered to a relative there.
I don’t know..
I recently bought a boat on ebay from eastern WI.. I had a shipper haul it to me in Minnesota.
Since I didn’t pick it up in WI myself I paid no sales tax in WI and the boat is not taxed in MN because it is used. I only paid tax on the trailer, so of course, only 50 dollars of my paid price was the trailer.
I with shipping I paid less than I would have paid if I paid the WI sales tax on the boat and hauled it myself BEFORE considering fuel/wear and tear.
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