Amazon.com - Notice of Termination due to New California Law

[HannahP]

Forcing businesses to collect taxes for 50 states is untenable.

Technically, it's not untenable at all, it's actually very simple. You know the zip code you are shipping to, so it's just a database query on a couple of tables that store the tax rates and zip codes. California online business have always collected sales tax on orders shipping to California.

Amazon isn't doing this because it would be too difficult to collect state taxes, they are doing it because collecting sales tax increases their net prices, which decreases their competitive edge. They fought similar laws in New York and lost, so the easiest way for them to fight the law in California is to pull the rug out from under hundreds of thousands of "associates" and make them mad enough to complain to the government.

 

[Andy.N]

What happens to affiliates in NY then? Is it next?

 

[grant sarver]

Technically, it's not untenable at all, it's actually very simple. You know the zip code you are shipping to, so it's just a database query on a couple of tables that store the tax rates and zip codes. California online business have always collected sales tax on orders shipping to California.

Amazon isn't doing this because it would be too difficult to collect state taxes, they are doing it because collecting sales tax increases their net prices, which decreases their competitive edge. They fought similar laws in New York and lost, so the easiest way for them to fight the law in California is to pull the rug out from under hundreds of thousands of "associates" and make them mad enough to complain to the government.

I currently collect state sales tax when I ship in Washington. Unfortunately, there is no relationship between the zip code and their tax district/tax rate. Currently it'a a PITA figuring out what to charge. Where can I find this database?

 

[Adam Howard]

I'm completely going to side with Amazon & it's customers.

We're taxed to death. I live in Massachusetts, best known through out the country as Tax-achusetts.

Honestly, we already pay 6.25% on normal sales and 7% + 75 cents for services or food.

To give you a better understanding. If I was to order 1 Cheese Burger from Mc`Donald's, off their DOLLAR Menu

$1.00 + 7% (0.07) + 0.75 = $1.82

 

[Anthony]

I'm completely going to side with Amazon & it's customers.

We're taxed to death. I live in Massachusetts, best known through out the country as Tax-achusetts.

Honestly, we already pay 6.25% on normal sales and 7% + 75 cents for services or food.

To give you a better understanding. If I was to order 1 Cheese Burger from Mc`Donald's, off their DOLLAR Menu

$1.00 + 7% (0.07) + 0.75 = $1.82

Food is taxed higher than normal sales? Strange.

 

[Adam Howard]

Food is taxed higher than normal sales? Strange.

The above example would count as the following

• Sale
• Service (because it's prepared), which brings the tax up to 7% and adds 75 cents

 

[grant sarver]

Well, I have never ordered a BigMac on Amazon!

 

[grant sarver]

Technically, it's not untenable at all, it's actually very simple. You know the zip code you are shipping to, so it's just a database query on a couple of tables that store the tax rates and zip codes. California online business have always collected sales tax on orders shipping to California.

Also, having done that, I have to send the 78 cents along with the required form to that state.......every quarter! And if I don't send money the following quarter, they send a form I have to fill out explaining why.

 

[akia]

I'm completely going to side with Amazon & it's customers.

We're taxed to death. I live in Massachusetts, best known through out the country as Tax-achusetts.

Honestly, we already pay 6.25% on normal sales and 7% + 75 cents for services or food.

To give you a better understanding. If I was to order 1 Cheese Burger from Mc`Donald's, off their DOLLAR Menu

$1.00 + 7% (0.07) + 0.75 = $1.82

I do love to hear Americans complaining about tax. Try being in the UK where we pay 20%.

 

[HannahP]

I have to send the 78 cents along with the required form to that state.......every quarter!

I thought we were talking about Amazon, in which case the amounts would be slightly more than 78 cents a quarter, and they might have one or two people hanging around the office who could handle those kinds of things. I'm just guessing.

 

[grant sarver]

I thought we were talking about Amazon, in which case the amounts would be slightly more than 78 cents a quarter, and they might have one or two people hanging around the office who could handle those kinds of things. I'm just guessing.

No, I'm actually concerned with how it affects the rest of us. The states see everyone as "Amazons" and make laws that affect all businesses, large or small.