Amazon is a reseller. Amazon takes products from small companies and inventors and exposes them to the buying public. Watch as small companies close and move out of state and business traffic dwindles to a halt in Kalifornicate. Watch the corresponding unemployment rise as a result. People are sick and tired of being taxed to death.
I just got an email ad from Cabelas, the way that they had it posed, it looked like there were quite a few bargains, I thought this might be good end of season opportunity to get a few things and I put about 6 or 8 things in the shopping cart, some shirts and jean jackets and insulated coveralls, all of which would have packed into a medium box that perhaps weighed 10 pounds. I started to check out and all of a sudden I notice that for my less than $200 order, I have over $50 in tax and shipping and handling........
I dont think so. DELETE.
Because Cabelas has a store in this state we would be taxed all over the state. Not I said the cat. So they just lost that sale. If more people would just notice what they are getting charged for and then cancel those orders, it would put the pinch on and wake some people up on the other end. I actually found some of what I was going to order in a local store for less money, no shipping and less tax. There. Solved that. See? We do get to vote.
Hang on. It’s not that simple.
You owe the tax regardless of whether or not the state can require the vendor to collect and remit the tax.
What Amazon and Overstock and, in some cases, Cabella are doing is asserting that they cannot be forced to collect and remit the tax the consumer owes and has owed for a long time. It’s called a compensating use tax.
BTW, the states aren’t “losing” tax revenues because of internet sales. They are getting mega taxes in the telecom services (think about all the new and taxable telecom services you buy every month) they never had before the advent of online shopping.
I would happily support sales tax enforcement of online purchases as soon as the states give up ridiculous telecom taxes.