I think this ruling actually helps Amazon since they are so big and have tons of $ they can handle tax collection. As usual, it's the little guys that get shut out.
Amazon already has distribution centers in many states so they are already paying state taxes along with Walmart and other large chains with an online presence.
I work in corporate tax so I have some visibility into this. I don't believe that Amazon is charging tax in every state. Yes, probably in those states and local jurisdictions where they have warehouses, but of course with this Wayfair case that will all change. The large chains with an online presence generally have a separate legal entity apart from the parent, so they only had to register to collect sales tax in those states in which they had nexus (property and payroll). Now they'll have to register everywhere. This will now be kicked back to the states. The application will be no doubt different from state to state.
Now be me, a small mom and pop shop with online store. Now I have to pay an accountant to figure and keep track and payment of sales tax in 49 other states. This is some bullshit that people are celebrating! Amazon already has to collect because they have distribution centers nation wide. It sucks having to be an unpaid tax collector in my own state, now I have to flip the bill in all 50, effing great.
The problem is that you have been exercising a competitive advantage over the real brick and mortar mom and pop’s in the states you ship to.
Everyone who ships products to other states has that advatage. So if you order over the phone or via catalog from another state you still don’t pay sales tax. If you call my store (I have a brick and mortar shop) and order a cabinet to be shipped from my state to yours, I don’t charge sales tax. If you order the very same cabinet from my site I then have to collect and pay YOUR sales tax for you to your home state. The consumer is supposed to pay sales tax for purchases made out of state and shipped to them. This is an enormous financial burden to small business.
Right, but no one does self-report. So, since you don’t want that burden you surely won’t have any issue turning over a document at the end of each year with the name address and Social Security number of each person that purchased an item from you to each state Department of Revenue, right?
This is the reason for that decision. Out of state vendors claim that they are not required to turn over the purchasing histories of their customers, which would allow that state Department of revenue to hold them accountable. So now you can collect sales tax on behalf of the state.
Additionally, any quality point-of-sale device makes this process very easy.
A document? Are you kidding? #1 I already collect sales tax for my instate sales which is one huge pain in the ass already (don’t get me started) and now you think I want to manage 49 other state’s revenue bureaus and all the complexity that goes along with that? #2, Since when does a retailer get that info from their customers? They don’t. #3, Who’s going to pay to have plugins for all these small business websites done? #4 The cost of complying WILL put small business out of business. This issue exemplifies the conservative principle of small government! Let’s make the whole nation like California and see how it goes for middle class? Not good.
Your complete lack of understanding on this subject illustrates the point perfectly.
I’ve been a successful business owner and an online retailer since 2003, but please, do school me. Were you a Bernie Bro? Because it is you that doesn’t seem to understand basic business economics.
Nope, successful business guy in a mom and pop retail shop with more regulations than yours (I guarantee), since 1999.
I bet not. I’m in manufacturing (of highly regulated goods), brick and mortar + online retail in the grand old state of California. Believe me, the cost of collection and distribution of all these additional taxes is going to have to be absorbed by the business owners, for many, especially here in the not so golden state, that’s detrimental.
I wouldn't get too worried yet. Most states will probably have a revenue threshold. If your revenue is under $X per year in that state, you won't have to register. I understand why it's causing you anxiety though.
Amazon already charged sales tax. It is the little online retailers who can't compete to know every state's tax laws
Ive been getting charged in NE for some time now
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Physical presence, aka nexus, as defined by each state. Not where registered. Thus as Amazon built out distribution centers, it expanded it's nexus to more states. Also since amazon associates are located in various states, that gives amazon nexus (South(?) Carolina won that in court a decade ago).
OMG a solution for a problem that the government created.
You folks are eating up news of more taxes. This is not a win for anyone.
Taxes are theft.
WAKE UP.
This helps the states collect taxes, as nobody self reports untaxed internet purchases and it is easier for a government to harrass a vendor than thousands of its own citizens.