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Amazon, Overstock thumb nose at California tax
San Francisco Chronicle ^ | 7/3/11 | Andrew S. Ross, Chronicle Columnist

Posted on 07/03/2011 3:35:55 PM PDT by SmithL

So, I went online Friday looking to buy a copy of John Kenneth Galbraith's "The Affluent Society & Other Writings, 1952-1967." Thought it might be timely to revisit the Harvard economist's distinction between "private affluence" and "public squalor."

Barnes & Noble's website was selling it for $26.53. Total, which included California sales tax: $28.79. "Total Before Tax" at Amazon.com: $26.40. "Estimated Tax To Be Collected: $0.00."

At Overstock.com, I could still buy furniture and various knickknacks free of the 7.25 percent tax, even though California's law mandating out-of-state Internet retailers to start collecting the taxes was now in effect.

In other words, screw you, California, and your laws.

"They're not intending to comply, by all indications," said Betty Yee, former chairwoman and current member of the state Board of Equalization, the agency charged with implementing the law. Friday evening, the board posted a "special notice clarifying the obligations of out-of-state retailers" on its website (sfg.ly/mh6SxF).

"So, we'll bill them at the end of this quarter, based on estimates either they provide or we come up from other data sources. Then, if they don't come forward and pay, we'll consider other courses of action."

That most likely means litigation, or, as Amazon and Overstock might see it, a game of "catch us if you can."

(Excerpt) Read more at sfgate.com ...


TOPICS: Business/Economy; Extended News; Government; US: California
KEYWORDS: amazon; california; goldenstate; overstock; taxandspend
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Fish gotta swim,
birds gotta fly, and
RATS gotta tax!

1 posted on 07/03/2011 3:36:02 PM PDT by SmithL
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To: SmithL

Amazon is not going to break the law. They have said they will stop doing the activity that is being taxed by dropping all of their affiliates.


2 posted on 07/03/2011 3:41:02 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
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To: SmithL

Pubbies like their taxes too.


3 posted on 07/03/2011 3:45:05 PM PDT by dfwgator
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To: dfwgator

Most Californians approve more taxes, just as long as the taxes are on someone else.


4 posted on 07/03/2011 3:47:23 PM PDT by SmithL
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To: SmithL

Most californians are stupid.The smart ones moved out years ago.


5 posted on 07/03/2011 3:49:22 PM PDT by HANG THE EXPENSE (Life is tough.It's tougher when you're stupid.)
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To: SmithL

Following the law these days is passe as illustrated by the Bambi administration.......Democrats refuse to pay thier taxes, Bambi refuses to step down even though he can’t prove eligibility, Bambi refuses to ask Congress for approval gto war with Libya.............hey, it’s rotten from the head down. anyone who would comply with CA is insane


6 posted on 07/03/2011 3:51:04 PM PDT by yldstrk (My heroes have always been cowboys)
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To: SmithL

“Don’t tax you, don’t tax me, tax that guy behind the tree.”


7 posted on 07/03/2011 3:54:29 PM PDT by dfwgator
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To: SmithL
Amazon is in a trickier position in California than they have been before. I haven't read the law, but other articles state that it doesn't just apply to the main company and any sales associates, but to subsidiaries too. Amazon's subsidiaries (although I might have the exact business relationship wrong) like Internet Movie Database and and Lab126 (the maker of the Kindle) are based in California. This makes California's claims different than those from the Quill vs. North Dakota which outlawed interstate sales tax collection without a business nexus. Do IMDB and Lab126 give Amazon a business nexus in California? I don't really know, but Amazon's lawyers better be working overtime on this issue.
8 posted on 07/03/2011 4:00:14 PM PDT by KarlInOhio (Extremism in the defense of liberty is no vice! Tea Party extremism is a badge of honor.)
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To: SmithL

Tennessee is more than happy to take over California’s business burdens.


9 posted on 07/03/2011 4:02:54 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: SmithL
On line sales taxes, if they could be collected, is a lot of money. Believe me with gov broke the thieves in D.C. will figure out how to get their "fair share".

Why should I pay state sales taxes on a purchase not made in my state? I go on-line and buy something from France or Japan why should I pay a state sales tax?

10 posted on 07/03/2011 4:03:37 PM PDT by jpsb
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To: SmithL
Board of Equalization

Comrade Mao approves

11 posted on 07/03/2011 4:04:41 PM PDT by Charlespg
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To: KarlInOhio

‘Do IMDB and Lab126 give Amazon a business nexus in California? I don’t really know, but Amazon’s lawyers better be working overtime on this issue.”

Amazon has a very simple remedy for this problem. Amazon like thousands of other companies can relocate their subsidiaries. Amazon is probably contemplating this move immediately after the law was signed.

I feel bad for the good conservatives in California. This once economic powerhouse has been reduced to a beggar state, focused on confiscation of property to meet the unending demands of government workers, illegal aliens, and environmentalists. The demise of California unfortunately is also the demise of the entire country at least to some extent.


12 posted on 07/03/2011 4:08:39 PM PDT by businessprofessor
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To: SmithL

Califoria doesn’t need to secede from the Union. They are already a foreign country. Unrecognizable to us southerners. Ditto for NY.


13 posted on 07/03/2011 4:09:00 PM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: jpsb
I go on-line and buy something from France or Japan why should I pay a state sales tax?

But you might have to pay import tariffs. I've never been caught, but I have heard of other people getting hit. Other countries seem to be more vigorous about enforcing their tariffs. On some hobby sites which discuss how to get products from the US into European countries, they often suggest using the US Post Office to ship to other countries post offices because they are checked less than shipping by UPS which collects some outrageous tariff brokerage fees on top of the tariff, so they are eager to catch their customers and report them.

14 posted on 07/03/2011 4:09:00 PM PDT by KarlInOhio (Extremism in the defense of liberty is no vice! Tea Party extremism is a badge of honor.)
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To: eyedigress
Tennessee is more than happy to take over California’s business burdens.

I'm just waiting for someone to tell Amazon that they can't pull out of California and do business in Tennessee (or elsewhere, for that matter).

15 posted on 07/03/2011 4:10:38 PM PDT by Tanniker Smith (I didn't know she was a liberal when I married her.)
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To: SmithL

The San Francisco Chronicle, doing what it does best—lie. Amazon is not required to collect CA sales tax on items sold by Amazon.com. The law has to do with in-state affiliates, from whom Amazon has just disaffiliated itself.


16 posted on 07/03/2011 4:11:41 PM PDT by giotto
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To: giotto

-——Amazon is not required to collect CA sales tax on items sold by Amazon.com. -——

I think you are wrong. The state collects taxes from state merchants for sales in the state. The affiliates are deemed to be Amazon presence in California as a merchant, therefore all Amazon sales to customers in the state are subject to the tax.

That is the way it is here in Tennessee and other states

By getting rid of the affiliates Amazon removed it’s presence in California and hence a tax obligation


17 posted on 07/03/2011 4:25:09 PM PDT by bert (K.E. N.P. N.C. D.E. +12 ....( History is a process, not an event ))
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To: KarlInOhio
Or, IMDb and Lab126 just move to Nevada or some more business friendly state.

If there is a connection between Amazon.com and these two businesses, it's time to say “hasta la vista, Commiefornia.”

Let Amazon, IMDb, Lab126, and Overstock move out and take their jobs and tax “contributions” with them to where the business climate is friendly.

18 posted on 07/03/2011 4:43:16 PM PDT by MasterGunner01 (To err is human; to forgive is not our policy. -- SEAL Team SIX)
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To: Tanniker Smith

I think Boeing will win that fight. As far as Amazon goes, they don’t make anything. It would be some good popcorn material to watch SC and TN tackle Obama for a 30yd loss.


19 posted on 07/03/2011 4:56:36 PM PDT by eyedigress ((Old storm chaser from the west)?)
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To: bert
all Amazon sales to customers in the state are subject to the tax.

Don't you mean, all Amazon sales to customers in the state who buy something on Amazon by way of a link from a California-based affiliate's website are subject to the tax (or would have been, if Amazon had not cut them loose?)

20 posted on 07/03/2011 4:59:49 PM PDT by giotto
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