Amazon's retail experiment will also include California 'pop-up' stores for holiday season

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Comments

  • Reply 21 of 34
    pazuzupazuzu Posts: 1,728member
    boltsfan17 wrote: »
    That's not what happened. California passed a law to collect sales tax from all online retailers shipping to California addresses. Amazon fought it, but eventually gave in. Amazon received tax breaks from the state to open several distribution centers in California. 

    I wonder if NYS did the same. We've been paying sales tax to Amazon for years now.
  • Reply 22 of 34
    boltsfan17boltsfan17 Posts: 2,294member
    Quote:

    Originally Posted by pazuzu View Post





    I wonder if NYS did the same. We've been paying sales tax to Amazon for years now.

    New York has a similar law so that's why you are paying sales tax. Amazon lost the court battle in NY. 

  • Reply 23 of 34
    Quote:
    Originally Posted by rosujin View Post

     

    I hope this hurts Best Buy the most.

     

    Best Buy sued to make Amazon collect sales tax in California even though Amazon had no physical presence in the state. After losing this battle, Amazon has officially entered California with Amazon Fresh and now these pop up locations.


     

    Heaven forbid they should level the playing field a bit since Amazon benefits from widespread tax evasion.

  • Reply 24 of 34
    kibitzer wrote: »
    Let's admit it. A lot of us buy from Amazon to avoid state sales taxes, since they've avoided establishing physical retail locations. I wonder what effect these pop-ups will have overall.

    Most states, in their never-ending quest to extract higher taxes on new victims, already eliminated the online sales tax exemption.
  • Reply 25 of 34
    dasanman69dasanman69 Posts: 13,002member
    pazuzu wrote: »
    I wonder if NYS did the same. We've been paying sales tax to Amazon for years now.

    It depends on the warehouse it's shipped from. If the consumer, and the shipper are in the same state you'll get taxed.
  • Reply 26 of 34
    dasanman69dasanman69 Posts: 13,002member
    Heaven forbid they should level the playing field a bit since Amazon benefits from widespread tax evasion.

    It's not Amazon that's evading taxes, it's us the consumer. A retailer just collects sales tax, and then passes it on to the state.
  • Reply 27 of 34
    Quote:

    Originally Posted by dasanman69 View Post





    It's not Amazon that's evading taxes, it's us the consumer. A retailer just collects sales tax, and then passes it on to the state.

     

    Right, but Amazon is benefiting. Many consumers choose online ordering even at the same price point, for the purpose of tax evasion.

  • Reply 28 of 34
    dasanman69dasanman69 Posts: 13,002member
    Right, but Amazon is benefiting. Many consumers choose online ordering even at the same price point, for the purpose of tax evasion.

    I don’t think that's a primary reason. Price, and home delivery are. I'd say it's more tax avoidance, than evasion.
  • Reply 29 of 34
    jungmarkjungmark Posts: 6,926member
    dasanman69 wrote: »
    I don’t think that's a primary reason. Price, and home delivery are. I'd say it's more tax avoidance, than evasion.

    It's an evasion. In many states, you are required to pay use tax on things you buy online if the company doesn't collect them at the time of sale. Govt don't go after individuals but they do go after companies that try to evade taxes.
  • Reply 30 of 34
    dasanman69dasanman69 Posts: 13,002member
    jungmark wrote: »
    It's an evasion. In many states, you are required to pay use tax on things you buy online if the company doesn't collect them at the time of sale. Govt don't go after individuals but they do go after companies that try to evade taxes.

    I'm pretty sure that people aren't actively trying to evade what is probably at most a few hundred dollars in taxes. The government doesn’t go after them because it's not cost effective. IMO there should be a flat rate sales tax on internet sales.
  • Reply 31 of 34
    Quote:

    Originally Posted by dasanman69 View Post





    I don’t think that's a primary reason. Price, and home delivery are. I'd say it's more tax avoidance, than evasion.

     

    Primary or not, Amazon is benefiting from providing a vehicle for tax evasion.

  • Reply 32 of 34
    dasanman69dasanman69 Posts: 13,002member
    Primary or not, Amazon is benefiting from providing a vehicle for tax evasion.

    So is every online store there is including Apple.
  • Reply 33 of 34
    Quote:
    Originally Posted by dasanman69 View Post





    I'm pretty sure that people aren't actively trying to evade what is probably at most a few hundred dollars in taxes. The government doesn’t go after them because it's not cost effective. IMO there should be a flat rate sales tax on internet sales.

     

    Say an average upper-middle-class family makes $5000 worth of retail purchases every month. If all of those were online purchases (they're not, I know), we're talking about, say 8% sales tax, which would be $400/month, and $4800/year. My neighborhood has 5000 such families. So this one section of our city could potentially evade $24M in sales tax every year. It seems like the gov't could find someone to dig around and pay for their salary many times over with audits and sales tax collection.

     

    Realistically, Amazon should do it. In my side-business, I'm responsible for collecting and paying sales tax, including for online purchases.

  • Reply 34 of 34
    Quote:

    Originally Posted by dasanman69 View Post





    So is every online store there is including Apple.

     

    ok

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