Tax-free ... for now.
Should you pay sales taxes for Internet purchases?
One advantage Amazon.com has had over brick-and-mortar retailers has been simple: No sales tax. Internet retailers have long avoided paying -- and charging their customers for -- the sales taxes that must be charged by their meatspace cousins. The real-world retailers have complained that the cyber-business thus has an unfair competitive advantage.
Now New York is trying to force out-of-state Internet retailers to collect taxes on purchases made by New Yorkers. Amazon is suing, saying the new law is unconstitutional, vague and overly broad.
Should states be allowed to charge sales taxes on Internet retailers?















Thoughts
Government is a service
Submitted on April 19th, 2009 by gerthdynnTo put it simply, government is a service. Sales tax on brick-n-morter stores makes sense as this local resource is using significant public resources. Internet stores get stuck in this limbo. Sure, sales tax from stuff their employees buy will fund various governmental services, but in general the warehouses that use as much or more of the public resources as large brick-n-morter stores don't give much back to the community they are in. So in essence, what New York wants is all of the money without providing much if any of the services that they must provide for other retailers and at the same time not reimbursing the communities that are actually affected by the higher public resource utilization.
I should go back a second. When I'm referring to public resources, I'm referring to roads, sidewalks, signal lights, law enforcement, street lighting, snow removal... etc etc etc. These are the basic services that the government provides that allow brick-n-morter business operate. You could say that the delivery services such as FedEx and UPS are making up for the resource under-utilization by internet business, but you can't completely state that.
This really goes back to the age old problem. Large centralized conglomerations are more efficient, but they detract from local businessmen. This was the case with farmers, with grocery stores, with small electronics stores and appliance stores. In general, the true "mom-and-pop" businesses have been destroyed by large conglomerations. Now the large conglomerations that destroyed most small businesses are complaining that they can't compete with Amazon and other internet retailers after they undercut local competition by being more efficient or in some cases just taking a loss which the smaller stores couldn't do.
So now we get back to one more fundamental question that Amazon asked as to the constitutionality of the tax. Our government is based on the concept of taxing with representation. Thus the only government that has the right to regulate interstate traffic is the federal government. This sounds an awful lot like a really good constitutional question that might be struck down my New York's own court system if the federal court system doesn't get to it first.
Sales Taxes
Submitted on August 12th, 2008 by AnonymousSale taxes are everywhere, how would the producer live otherwise? Perhaps Amazon says they have no sales taxes, but I'm sure they do, at least a small percentage. Is it something like the google massacre?
Online Taxes
Submitted on August 11th, 2008 by AnonymousWhy are we U.S. citizens have to pay taxes for online purchases. I myself work for big box mart. The income is basically going on utilities. Why not charge taxes on utilities. Wait. We pay taxes on utilities. What about the pork barrel projects such as Federal Government wasting taxpayers money on war, foolish projects that mounts to hill of beans which will eventually decay. We have companies who are trying to struggle. I am talking about companies that get started in infancy. Like Computer shops along with others like them. I have seen them go in and out of business. Matter of fact, The oil companies needs to pay their share of taxes on their windfall profits they have made. That is being unfair to the poor people like myself and others who are struggling.
End result
Submitted on May 6th, 2008 by Cycle_GeezerI'm one of the guilty parties myself. Dodging the sales tax thing that is. Most states already have a mechanism by which you are supposed to pay sales tax for online purchases, but there is really no enforcement mechanism, so who complies?
The continued dodging of sales taxes through online purchasing will eventually result in local income taxes, or higher local income taxes in municipalities that already have income taxes, and higher state income taxes. The states and cities won't go without that revenue forever.
No taxes for online sales
Submitted on May 6th, 2008 by AnonymousThe government should work *for* and *with* the people, not against them. The government can't act like a separate entity with its own desires trumping those of the citizens. If a citizen wants to find a way to legally circumvent certain taxes, then the government should stand back and let it happen. Yes, this may result in lost revenues, but that can't be a deciding factor. Forcing internet sales to include sales taxes is like forcing Hybrid buyers to pay an added registration fee, due to the smaller amount of gas taxes they pay.
Point taken.
Submitted on May 5th, 2008 by The Big KlosowskiHowever, I think it would probably do a bit of both, because I wouldn't spend the cash with local businesses either. Sometimes if it is a local only product, I won't buy it because the sales tax actually makes it less affordable, so I don't purchase anything.
Take for example the latest camera I had to buy for our photography business. It was $4k online, which I could just barely afford. The local place sells it for $4450 + tax. Tax would have added over $320 to my purchase. As it was barely affordable without tax, with tax I would have just waited another year or so to buy anything at all.
So you'd rather kill bricks-and-mortar business instead?
Submitted on May 5th, 2008 by JoelBecause the online folks are getting an unfair competitive advantage. That might be a great way to encourage online retailing, but it's a lousy way to treat established businesses.
This would kill online businesses.
Submitted on May 5th, 2008 by The Big KlosowskiI must confess, I do all my shopping online precisely for this reason. Without it, I would most likely not do any shopping online at all.
Answer
Submitted on May 5th, 2008 by JoelAs I understand it: Colorado. Why: I'm not sure why the sales tax would be charged in the purchaser's home state as opposed to the seller's. But that doesn't just happen online. In some states -- Kansas being one -- the taxes you pay to buy a big-ticket item in one county (a car, say) gets collected in the county where you live.
Question
Submitted on May 5th, 2008 by AnonymousI live in Denver. I bought a graduation present online from a store in Illinois. The store is using a computer server in Massachusetts. They had it shipped to my nephew in California direct from the manufacturer in Georgia. Tell me which states are supposed to collect sales taxes and why.