Internet Giants Mull Calif. Pullout to Avoid Taxes

Newsmax ^ | June 1, 2011 | Martin Gould

[Qbert]

Internet companies such as Amazon and Overstock are threatening to pull out of California rather than collect state sales tax on tens of millions of dollars worth of business, the Los Angeles Times reports.

The move comes after the Golden State’s Assembly passed a law expanding the tax to Internet sales for companies that have a physical presence or sister companies with offices there.

The move passed the Democrat-controlled lower house on Tuesday on a 47-16 vote. It now goes to the Senate.

[Snip]

One Republican voted with the majority. The rest rejected the move saying it would drive business out of California and invite lawsuits. GOP Assemblyman Shannon Grove called the move “just another tax grab.”

[Snip]

The state sales tax rate is currently 8.25 percent with local taxes adding as much as a further 2.5 percent.

[Lancey Howard]

California doesn’t like businesses, except for maybe a few “green” businesses, so anybody who wants to make a (shudder) profit should run, not walk, away from that place as quickly as possible.

[Lancey Howard]

Back in the early ‘80s my wife and I toured Europe and my wife bought some crystal items to bring home. A couple of weeks after we got home we started getting letters and even a phone call from the shop where she bought the crystal. Apparently, they had forgotten to collect the VAT. Since we never heard of a “VAT” and couldn’t get an understandable explanation of what it was for from the guy who called us, we just laughed it off.

[Buckeye McFrog]

Tax the Rich!!!!!!!

Can’t pull that off here as the PA State Constitution requires all residents to be taxed equally, so our state income tax is essentially a flat tax (which is a wonderful thing, without that I’m sure we would have had a 12% top bracket a long time ago) Gotta look to hide the salami then in various fees and an internet tax.

[allmendream]

Yes, and the associated companies are a bunch of bookstores.

“Liberalism killed the local book store.”

All those pro-socialist liberal book store owners may even question some of their assumptions. maybe.

[Carry_Okie]

given the internet, we may eventually be buying via internet from outside the USA to avoid the confiscatory taxes.

For those who want an NRST, this will justify government control over every Internet transaction.

[stayathomemom]

You would be exempt from paying the VAT, but I suppose since you and the store didn’t fill out the appropriate forms before you left the country, the store probably got left holding the tax bill.

[Red Badger]

When the corporations in CA and other states finally leave for greener pastures, and all the states are left full of unemployable and illegal immigrant welfare recipients, there will be riots and chaos. The beast will demand to be fed. The state government larders will be empty and with no chance of ever filling them again under the present system..................

[jhroberts]

Will the last business to leave Kookyfornia please turn out the lights? What a bunch of losers. Yes, I’m talking about the voters as democrat politicians are expected to act stupidly. California is the textbook example of Einstein’s definition of insanity — doing the same thing over and over again expecting a different result.

[sr4402]

Will the last business to leave Kookyfornia please turn out the lights?

I used to work for a California Business called HP, which now has it's corporate headquarters in Delaware the last time I looked. Seems taxes were bad then, so now I am not surprised. Internet business can move quite easily.

They should think of Georgia. We have a pro-business environment here and have not raised taxes like Illinois, Connecticut or some other states. There is low taxes for our citizens (your moved workers) and housing prices are great.

Why stay in Liberalland when you can come back to good old capitalism (used to be called "The American Way").

[Tonytitan]

Is it me, or does this sound a lot like the Boeing 787 move?

They just signed a deal to build a brand new warehouse/distribution center in Tennessee creating 1600 jobs in the process. The state tried at the last minute to condition approval of the deal on Amazon collecting state sales tax. Amazon threatened to find a new location. The state relented. And TN is a right-to-work state.

[Defiant]

Excellent work!

[tenger]

Taxes, fees, excises, and tariffs that some or all of us pay:

1. Accounts Receivable Tax
2. Accounting and Tax Preparation fees (cost to taxpayers $300 billion)
3. Accumulated Earnings Tax
4. Accumulation Distribution of Trusts
5. Activity Fee (Dumping Permit Fee)
6. Air Tax (PA coin-operated vacuums)
7. Aircraft Jet Fuel Tax
8. Aircraft Excise Tax
9. Alcohol Fuels Tax
10. Alcoholic Beverage Tax
11. Alternative Minimum Tax - Amt
12. Ambulance Services (Air Ambulance Services, SD)
13. Ammunition Tax
14. Amusement Tax (MA, VA, MD)
15. Annual Custodial Fees (Ira Accounts)
16. Ballast Water Management Fee (Marine Invasive Species)
17. Biodiesel Fuel Tax
18. Blueberry Tax (Maine)
19. Bribe Taxes (Pay If You Dare)
20. Brothel licensing fees (NV - $35,000.00 per year per brothel)
21. Building Permit Tax
22. Capital Gains Tax
23. California Interstate User Diesel Fuel Tax
24. California Redemption Value (Can and Bottle Tax)
25. CDL License Tax
26. Charter Boat Captain License
27. Childhood Lead Poisoning Prevention Fee
28. Cigarette Tax
29. Cigarette Tax Stamp (Acts) (Distributors)
30. Compressed Natural Gas Tax
31. Commercial Activity Tax (OH - for Service Providers)
32. Corporate Income Tax
33. Court Fines (Indirect Taxes)
34. Disposable Diapers Tax (Wisconsin)
35. Disposal Fee (Any Landfill Dumping)
36. Dog License Tax
37. Electronic Waste Recycling Fee (E-Waste)
38. Emergency Telephone User Surcharge
39. Environmental Fee (CA - HazMat Fees)
40. Estate Tax (Death Tax, to be reinstated)
41. Excise Taxes
42. Facility Fee (CA - HazMat Fees)
43. FDIC tax (insurance premium on bank deposits)
44. Federal Income Tax
45. Federal Unemployment Tax (FUTA)
46. Fiduciary Income Tax (Estates and Trusts)
47. Fishing License Tax
48. Flush Tax (MD Tax For Producing Wastewater)
49. Food License Tax
50. Fountain Soda Drink Tax (Chicago - 9%)
51. Franchise Tax
52. Fresh Fruit (CA, if Purchased From A Vending Machine)
53. Fuel Permit Tax
54. Fur Clothing Tax (MN)
55. Garbage Tax
56. Gasoline Tax (44.75 Cents Per Gallon)
57. Generation-Skipping Transfer Tax
58. Generator Fee (Recycled Waste Fee)
59. Gift Tax
60. Gross Receipts Tax
61. Hamburger Tax
62. Hazardous Substances Fees: Generator, Facility, Disposal
63. Household Employment Taxes
64. Hunting License Tax
65. Illegal Drug Possession (No. Carolina)
66. Inheritance Tax
67. Insect Control Hazardous Materials License
68. Insurance Premium Tax
69. Intangible Tax (Leases Of Govt. Owned Real Property)
70. Integrated Waste Management Fee
71. Interstate User Diesel Fuel Tax
72. Inventory Tax
73. IRA Rollover Tax (a transfer of IRA money)
74. IRA Early Withdrawal Tax
75. IRS Interest Charges
76. IRS Penalties (Tax On Top Of Tax)
77. Jock Tax (income earned by athletes in some states)
78. Kerosene, Distillate, & Stove Oil Taxes
79. Kiddie Tax (Child's Earned Interest Form 8615)
80. Lead Poisoning Prevention Fee (Occupational)
81. Lease Severance Tax
82. Liquid Natural Gas Tax
83. Liquid Petroleum Gas Tax
84. Liquor Tax
85. Litigation Tax (TN Imposes Varies With the Offense)
86. LLC/PLLC Registration Tax
87. Local Income Tax
88. Lodging Taxes
89. Lump-Sum Distributions
91. Make-Up Tax (Ohio, applying in a salon is taxable)
92. Marriage License Tax
93. Meal Tax
94. Medicare Tax
95. Mello-Roos Taxes (Special Taxes and Assessments)
96. Minnow Dealers License (Retail - For One Shop)
97. Minnow Dealers License (Distributor - For One+ Shops)
98. Mobile Home Ad Valorem Taxes
99. Motor Fuel Tax (For Suppliers)
100. Music and Dramatic Performing Rights Tax
101. Nudity Tax (Utah)
102. Occupation Tax (Various Professional Fees)
103. Oil and Gas Assessment Tax
104. Oil Spill Response, Prevention, And Administration Fee
105. Pass-Through Withholding
106. Pay-Phone Calls Tax (Indiana)
107. Personal Property Tax
108. Personal Holding Company (undistributed earnings)
109. Pest Control License
110. Petroleum Business Tax
111. Playing Card Tax (Al)
112. Pole Tax (TX - A $5 Cover Charge On Strip Clubs)
113. Profit from Illegal Drug Dealing
114. Property Tax
115. Prostitution Tax (NV - Prostitute Work Permits)
116. Rain Water Tax (Runoff after a Storm)
117. Real Estate Tax
118. Recreational Vehicle Tax
119. Road Usage Tax
120. Room Tax (Hotel Rooms)
121. Sales Tax (State)
122. Sales Tax (City)
123. Sales And Use Tax (Sellers Permit)
124. School Tax
125. Service Charge Tax
126. Self Employment Tax
127. Sex Sales Tax (UT, when nude people perform services)
128. Sewer & Water Tax
129. Social Security Tax
130. Sparkler and Novelties Tax (WV Sellers of Sparklers, etc.)
131. Special Assessment Tax (Not Ad Valorem)
132. State Documentary Stamp Tax on Notes (FL RE Tax)
133. State Franchise Tax
134. State Income Tax
135. State Park Fees
136. State Unemployment Tax (SUTA)
137. Straight Vegetable Oil (SVO) Fuel Tax
138. Stud Fees (Kentucky?s Thoroughbred Sex Tax)
139. Tangible Personal Property Tax
140. Tattoo Tax (AR Tax On Tattoos)
141. Telephone Federal Excise Tax
142. Telephone Federal Universal Service Fee Tax
143. Telephone Federal Surcharge Taxes
144. Telephone State Surcharge Taxes
145. Telephone Local Surcharge Taxes
146. Telephone Minimum Usage Surcharge Tax
147. Telephone Recurring Charges Tax
148. Telephone Non-Recurring Charges Tax
149. Telephone State Usage Charge Tax
150. Telephone Local Usage Charge Tax
151. Tire Recycling Fee
152. Tobacco Tax (Cigar, Pipe, Consumer Tax)
153. Tobacco Tax (Cigar, Pipe, Dealer Tax)
154. Toll Road Tax
155. Toll Bridge Tax
156. Toll Tunnel Tax
157. Tourism or Concession License Fee
158. Traffic Fines (Indirect Taxation)
159. Transportable Treatment Unit Fee (Small Facility)
160. Trailer Registration Tax
161. Trout Stamp (Addendum To Fish License)
162. Use Taxes (On Out-Of-State Purchases)
163. Utility Taxes
164. Unemployment Tax
165. Underground Storage Tank Maintenance Fee
166. Underpayment of Estimated Tax (Form 2210)
167. Unreported Tip Income (Social Security and Medicare Tax)
168. Vehicle License
169. Registration Tax
170. Vehicle Sales Tax
171. Wagering Tax (Tax on Gambling Winnings)
172. Waste Vegetable Oil (WVO) Fuel Tax
173. Water Rights Fee
174. Watercraft Registration Tax
175. Waterfowl Stamp Tax
176. Well Permit Tax
177. Workers Compensation Tax

That's not all of them, but they cover a lot.

[Mich Patriot]

Agree 100%. There is a real shit-storm on the radar.

[little jeremiah]

BTTT for an important list which I will shortly copy to my files.

[PATRIOT1876]

It will be like Baja in about 15 years.

Last business to leave California turn out the lights….that is, if the enviro-weenies haven’t banned electricity by then.

[Mr. Jeeves]

California likes software companies, because they pay high wages and don’t produce any pollution. The problem is, many in the Legislature have deluded themselves into thinking the whole state economy can be built on nothing but software companies and movie studios, with the “dirty work” being done in some place they consider ugly and backward, like China or Texas. They are learning the hard way that such an economic plan cannot work.

[PATRIOT1876]

*When the corporations in CA and other states finally leave for greener pastures, and all the states are left full of unemployable and illegal immigrant welfare recipients, there will be riots and chaos. The beast will demand to be fed. The state government larders will be empty and with no chance of ever filling them again under the present system..................*

If you live in California, the time to sell your $900,000, 1200 sq. ft. house is now!

[Red Badger]

If you live in California, the time to sell your $900,000, 1200 sq. ft. house is now!

If you live in California, the time to sell your $900,000, 1200 sq. ft. house FOR $250,000 is now!..................

[fifedom]

Most of my stuff from Amazon gets shipped in from their warehouse in Nevada. All Amazon will have to do is get rid of their California individual sellers and the state cannot collect the tax. That’s a shame for them but they will be collateral damage to the money hungry Rats in Sacto.

[Red Badger]

I watched “Mad Max”, “Book of Eli” and other such post-apocalyptic movies lately and wondered if they aren’t prophetic.....................