Amazon.com makes threat over California sales tax

Amazon is threatening to stop doing business with about 10,000 California companies, if the state starts making online companies collect a sales tax. Currently, Amazon is not required to collect sales tax, because it has no physical presence in the state. Avoiding that sales tax is one of the reasons buying from Amazon and other online retailers is so attractive; savings of nearly 10%.  The state could be collecting as much as $150 million dollars more a year in taxes if the state required online retailers to collect sale taxes.

Comments

[Maria Cornwell]

Well, according to the sales & use tax law, the customers are supposed to report the use tax on these transactions on either their Sales & Use Tax Returns if their a registered business or for consumers these purchases should be reported on their FTB returns

[funksoul]

Enough Taxes Jerry brown. I already buy anything over $50.00 out of state- either through Amazon, other e-tailers or "other means." When will they realize that sales tax is NOT the way to fund the state, etc. Even if they close this loophole, there are plenty of ways to avoid sales taxes but the bottom line is that California businesses loose and that is not good. I'm unemployed in this lovely state and I do whatever I have to do to save a dime hear and there and YES< it does add up. Californian's are so apathetic and should not have approved the increases in the first place.

[Brad Fallon]

What is the correct law for this? Should Amazon collect? It would be unfair for them because they would had been constrained to collect in the first place if they should but now that they are on top, the State would demand from them such tax. I myself would do what Amazon will do, slam the business!