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Author Topic: Amazon To Start Charging Tax In My State  (Read 946 times)
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ATB
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« on: January 28, 2014, 01:59:33 PM »

(Feel like there's an amazon tax thread somewhere but can't find it)

Beginning Feb 1, Amazon will start charging sales tax in NC.  We join 19 other unlucky stupid states who already have been taxed on their goods from Amazon.

This is such a bummer and a life ruiner.

Ok, that's overstating it, but it's definitely a bummer.

And they have pretty much started getting things to me overnight now instead of two days. Ordered a TV on Thurs, was at my door before I got home from work on Friday.  frown
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« Reply #1 on: January 28, 2014, 02:04:14 PM »

No, you're not overstating things.  This is indeed one of the toughest disasters mankind has ever faced.  We're in the process of building a wall around New Mexico right now to help ensure Amazon's tax collectors never make it in here.
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« Reply #2 on: January 28, 2014, 02:08:55 PM »

Why is it such a big deal? Doesn't it just mean you have to pay what the merchandise costs? We pay taxes on everything here in Denmark that we import, and have been forever I'd say.
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« Reply #3 on: January 28, 2014, 02:16:50 PM »

Quote from: Razgon on January 28, 2014, 02:08:55 PM

Why is it such a big deal? Doesn't it just mean you have to pay what the merchandise costs? We pay taxes on everything here in Denmark that we import, and have been forever I'd say.

There's a loophole in our tax code where online retailers that don't have a physical presence in that state don't have to collect that state taxes.  You're actually supposed to pay it when you file, but many don't


Maryland when be joining that growing list of states where Amazon will be collecting taxes... I will weep on that day

Positive thing is that Amazon is opening a huge distribution center at the old GM plant in Sparrowspoint that will employee about 1500 people
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« Reply #4 on: January 28, 2014, 02:23:51 PM »

Soul beat me to the punch, but I'm posting it anyway!

Quote from: Razgon on January 28, 2014, 02:08:55 PM

Why is it such a big deal? Doesn't it just mean you have to pay what the merchandise costs? We pay taxes on everything here in Denmark that we import, and have been forever I'd say.

There's no federal sales tax in America, but most states do.  Generally it's somewhere between 4-6% for most states, but NY is up to 8.5% if Wikipedia is up-to-date.  

For in-person shopping, it's not really a huge deal.  It's just a thing that happens, and nobody really makes a fuss.

But with online shopping, there's been a loophole for a long while and sites like Amazon haven't been charging sales tax.  Technically, I think we're supposed to report all our online purchases and pay that sales tax directly.  (Pause for laughter.)

But now things are changing, and more and more states are getting sales tax on their online purchases.  

So that's why ATB is joking about it being a life ruiner.  It's not really, but it sure has been nice having products be 4-8% cheaper just because you bought them online instead of in a store.
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« Reply #5 on: January 28, 2014, 02:41:53 PM »

aha! thanks for explaining!

I can tell you though, if its any consolation, we pay 25 percent on imported goods :-)
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« Reply #6 on: January 28, 2014, 02:54:30 PM »

Quote from: Razgon on January 28, 2014, 02:41:53 PM

aha! thanks for explaining!

I can tell you though, if its any consolation, we pay 25 percent on imported goods :-)

Jebus, seriously?  Is it reflected on the listed price, so imported things just always look more expensive, or do you just know that when you ring up the price it'll be 25% more expensive?
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« Reply #7 on: January 28, 2014, 03:21:35 PM »

Quote from: wonderpug on January 28, 2014, 02:54:30 PM

Quote from: Razgon on January 28, 2014, 02:41:53 PM

aha! thanks for explaining!

I can tell you though, if its any consolation, we pay 25 percent on imported goods :-)

Jebus, seriously?  Is it reflected on the listed price, so imported things just always look more expensive, or do you just know that when you ring up the price it'll be 25% more expensive?

I think the Norwegian import tax is similar, and most serious online retailers (including Amazon) will show clearly on the invoice and the checkout page how much you're actually paying in taxes out of the full amount you're being charged.
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« Reply #8 on: January 28, 2014, 03:29:16 PM »

Indeed -its after you go to the checkout we see the taxed prices so we just kinda know we have to add a bit to the price. I know 25 percent is a lot, but bear in mind, we have free healthcare ;-)

I do seem to remember Denmark has one of the highest taxes on personal income. I pay close to 60 percent in taxes on my income, so its not something that is unfamiliar to us.
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« Reply #9 on: January 28, 2014, 06:28:22 PM »

Yeah when we got it last year (CA) I was pretty bummed but what can you do.  The fact is it does make the competition more fair for companies like Best Buy and Target, not to mention the last remaining traditional book stores.  Still, even with the taxes, with free Prime shipping I'll still tend to go with Amazon out of convenience - and of course their pricing is almost always the best unless there's some sort of special/exclusive sale.
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« Reply #10 on: January 28, 2014, 07:06:07 PM »

Quote from: rittchard on January 28, 2014, 06:28:22 PM

Yeah when we got it last year (CA) I was pretty bummed but what can you do.  The fact is it does make the competition more fair for companies like Best Buy and Target, not to mention the last remaining traditional book stores.  Still, even with the taxes, with free Prime shipping I'll still tend to go with Amazon out of convenience - and of course their pricing is almost always the best unless there's some sort of special/exclusive sale.

Technically we were supposed to self report and pay those taxes even before Amazon started doing it for us.

Of course I don't think anyone ever did that.
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« Reply #11 on: January 28, 2014, 08:59:51 PM »

Quote from: rittchard on January 28, 2014, 06:28:22 PM

Yeah when we got it last year (CA) I was pretty bummed but what can you do.  The fact is it does make the competition more fair for companies like Best Buy and Target, not to mention the last remaining traditional book stores.  Still, even with the taxes, with free Prime shipping I'll still tend to go with Amazon out of convenience - and of course their pricing is almost always the best unless there's some sort of special/exclusive sale.

I don't get this.  (Not to pick on you personally at all)

Since sales tax stays in your local community wouldn't people like to pay sales tax over other taxes?  The sales tax is actually one of the most obvious taxes we pay.  You can see people working to fix the pot holes, you can hear the fire truck going down the street, etc.  It isn't nearly as abstract at "helping sorgum farms in Maine" or that kind of thing from the federal budget.  Now that doesn't mean it can't be spent on stupid stuff just that we can see the stupid stuff easier.  smile

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« Reply #12 on: January 28, 2014, 09:28:02 PM »

Even though one can logically reason out why taxes are necessary to have the kind of civilization we want to have, taxes are still something that's hard to get excited about. smile
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« Reply #13 on: January 28, 2014, 09:38:08 PM »

I am not excited about it.... icon_lol  But I like paying sales tax a lot more than federal taxes. 

And it isn't even about the "mom and pop" business that are being run out of business.  Many of them suck and deserve it (really who has a used book store only open from 10-4 Mon to Friday.  Do they really think that is when people will be out shoping the most?!) 

It is about the local services.  I like my fire department, police department, and schools.  I see a value to them every day so I don't mind knowing my money is going to them.   I feel like that is a fair way to raise money for what we all agree we need (and if you are one of those folks who don't believe we need a publicly funded fire department....well that is another discussion.)  So it is great that sales tax will be going back to them.



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« Reply #14 on: January 29, 2014, 03:49:37 AM »

Quote from: rittchard on January 28, 2014, 06:28:22 PM

Yeah when we got it last year (CA) I was pretty bummed but what can you do.  The fact is it does make the competition more fair for companies like Best Buy and Target, not to mention the last remaining traditional book stores. 

It's also a little boon for small online retailers (like, oh, me for instance) who can't afford to offer free shipping. Companies that ship 100,000 packages a year get sweetheart pricing from the carriers. The rest of us have to pay the same retail shipping rates that you do so we have to pass that cost along. But at least my store is still tax-free in 49 states.
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« Reply #15 on: January 29, 2014, 02:42:01 PM »

Quote from: farley2k on January 28, 2014, 08:59:51 PM

Quote from: rittchard on January 28, 2014, 06:28:22 PM

Yeah when we got it last year (CA) I was pretty bummed but what can you do.  The fact is it does make the competition more fair for companies like Best Buy and Target, not to mention the last remaining traditional book stores.  Still, even with the taxes, with free Prime shipping I'll still tend to go with Amazon out of convenience - and of course their pricing is almost always the best unless there's some sort of special/exclusive sale.

I don't get this.  (Not to pick on you personally at all)

Since sales tax stays in your local community wouldn't people like to pay sales tax over other taxes?  The sales tax is actually one of the most obvious taxes we pay.  You can see people working to fix the pot holes, you can hear the fire truck going down the street, etc.  It isn't nearly as abstract at "helping sorgum farms in Maine" or that kind of thing from the federal budget.  Now that doesn't mean it can't be spent on stupid stuff just that we can see the stupid stuff easier.  smile



The People's Republic of CA already takes ~10% of my pay as income tax. Sales tax adds another 9% of what I spend. This is a lot of taxes.
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« Reply #16 on: January 29, 2014, 03:21:59 PM »

Quote from: gellar on January 29, 2014, 02:42:01 PM

The People's Republic of CA already takes ~10% of my pay as income tax. Sales tax adds another 9% of what I spend. This is a lot of taxes.

No it's not. Tongue
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« Reply #17 on: January 29, 2014, 03:27:28 PM »

Quote from: TiLT on January 29, 2014, 03:21:59 PM

Quote from: gellar on January 29, 2014, 02:42:01 PM

The People's Republic of CA already takes ~10% of my pay as income tax. Sales tax adds another 9% of what I spend. This is a lot of taxes.

No it's not. Tongue

Relative to what we get out of it, it is. You guys get a lot more.
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« Reply #18 on: January 29, 2014, 04:30:21 PM »

Quote from: gellar on January 29, 2014, 03:27:28 PM

Quote from: TiLT on January 29, 2014, 03:21:59 PM

Quote from: gellar on January 29, 2014, 02:42:01 PM

The People's Republic of CA already takes ~10% of my pay as income tax. Sales tax adds another 9% of what I spend. This is a lot of taxes.

No it's not. Tongue

Relative to what we get out of it, it is. You guys get a lot more.
yeah, this is the the state that paid it's employees in IOUs. 

as a resident of Washington, we've always had that sales tax on Amazon, at least as far as I can remember.  it sucks, but at least Newegg is tax free still. 
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« Reply #19 on: January 29, 2014, 05:41:20 PM »

Quote from: Caine on January 29, 2014, 04:30:21 PM

Quote from: gellar on January 29, 2014, 03:27:28 PM

Quote from: TiLT on January 29, 2014, 03:21:59 PM

Quote from: gellar on January 29, 2014, 02:42:01 PM

The People's Republic of CA already takes ~10% of my pay as income tax. Sales tax adds another 9% of what I spend. This is a lot of taxes.

No it's not. Tongue

Relative to what we get out of it, it is. You guys get a lot more.
yeah, this is the the state that paid it's employees in IOUs. 

as a resident of Washington, we've always had that sales tax on Amazon, at least as far as I can remember.  it sucks, but at least Newegg is tax free still. 

I just found out Washington state has no income tax!  HAX!
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« Reply #20 on: January 29, 2014, 05:45:05 PM »

Quote from: leo8877 on January 29, 2014, 05:41:20 PM

Quote from: Caine on January 29, 2014, 04:30:21 PM

Quote from: gellar on January 29, 2014, 03:27:28 PM

Quote from: TiLT on January 29, 2014, 03:21:59 PM

Quote from: gellar on January 29, 2014, 02:42:01 PM

The People's Republic of CA already takes ~10% of my pay as income tax. Sales tax adds another 9% of what I spend. This is a lot of taxes.

No it's not. Tongue

Relative to what we get out of it, it is. You guys get a lot more.
yeah, this is the the state that paid it's employees in IOUs. 

as a resident of Washington, we've always had that sales tax on Amazon, at least as far as I can remember.  it sucks, but at least Newegg is tax free still. 

I just found out Washington state has no income tax!  HAX!
Tongue
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« Reply #21 on: January 29, 2014, 07:59:21 PM »

Washington, Alaska, Nevada, Wyoming, South Dakota, Texas, Tennessee, New Hampshire, Florida.
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« Reply #22 on: January 29, 2014, 11:32:22 PM »

Quote from: Isgrimnur on January 29, 2014, 07:59:21 PM

Washington, Alaska, Nevada, Wyoming, South Dakota, Texas, Tennessee, New Hampshire, Florida.

I've mulled this list over in my mind for years and there's still really only one state there I'd be willing to live.
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« Reply #23 on: January 30, 2014, 02:16:03 AM »

Quote from: Isgrimnur on January 29, 2014, 07:59:21 PM

Washington, Alaska, Nevada, Wyoming, South Dakota, Texas, Tennessee, New Hampshire, Florida.

I have spent a good portion of my life living in 4 of those states, I guess that is why I always though the majority of states didn't have an income tax. Since I had never really thought about it, and I have always been a legal resident of WA no matter what state I have physically lived in, I have a question: when you have an income tax, are the other taxes cheaper? Is there a lower sales tax, etc? For instance WA sales tax is something like 10%, is it cheaper in states with an income tax?
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« Reply #24 on: January 30, 2014, 02:24:34 AM »

State sales taxes. Most places I've lived in Texas have been content to max it out at 8.25%.

When Dad was in, he kept his home state as FL until he retired in NV.
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« Reply #25 on: January 30, 2014, 03:12:20 AM »

And apparently I have no idea what the sales tax is in the state I live in. Guess it's only 6.5% here (7.7% in my county).

So looking at the list, it seems most states with an income tax also have a large sales tax. I wonder how the non income tax states make up for it?
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« Reply #26 on: January 30, 2014, 03:19:04 AM »

Texas gets a combined 59% from federal receipts and sales tax (32.8 and 26.8, respectively). No other individual source is over 8%, so it's a buckshot approach from there.
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« Reply #27 on: January 30, 2014, 03:21:07 AM »

Quote from: gellar on January 29, 2014, 11:32:22 PM

Quote from: Isgrimnur on January 29, 2014, 07:59:21 PM

Washington, Alaska, Nevada, Wyoming, South Dakota, Texas, Tennessee, New Hampshire, Florida.

I've mulled this list over in my mind for years and there's still really only one state there I'd be willing to live.

Which one? 
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« Reply #28 on: January 30, 2014, 03:22:48 AM »

Wyoming (PDF) apparently gets 84.1% of its monies from sales tax. Seems like they need to diversify.
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« Reply #29 on: January 30, 2014, 03:35:59 AM »

Quote from: Isgrimnur on January 30, 2014, 03:22:48 AM

Wyoming (PDF) apparently gets 84.1% of its monies from sales tax. Seems like they need to diversify.

WY makes their money off of coal and oil.
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« Reply #30 on: January 30, 2014, 03:44:01 AM »

Ah. That was just the Excise division number.
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« Reply #31 on: January 30, 2014, 04:14:49 AM »

I thought that states without income tax make their money on property taxes. I know that's the story in NH, at least.

In MA our income tax is 5.2%, sales tax is 6.25% (with most towns adding a 0.75% meals tax), and property taxes are strictly local.
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« Reply #32 on: January 30, 2014, 04:37:18 AM »

Quote from: Ironrod on January 30, 2014, 04:14:49 AM

I thought that states without income tax make their money on property taxes. I know that's the story in NH, at least.

Yeah, that's what I always heard about WA when I lived there.
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« Reply #33 on: January 30, 2014, 01:56:23 PM »

Quote from: TiLT on January 28, 2014, 03:21:35 PM

Quote from: wonderpug on January 28, 2014, 02:54:30 PM

Quote from: Razgon on January 28, 2014, 02:41:53 PM

aha! thanks for explaining!

I can tell you though, if its any consolation, we pay 25 percent on imported goods :-)

Jebus, seriously?  Is it reflected on the listed price, so imported things just always look more expensive, or do you just know that when you ring up the price it'll be 25% more expensive?

I think the Norwegian import tax is similar, and most serious online retailers (including Amazon) will show clearly on the invoice and the checkout page how much you're actually paying in taxes out of the full amount you're being charged.

Some countries in Europe have a 100% import/duty tax on bringing in cars form the US.  That's right you buy it twice.  I believe 'classic' cars 25 years old are exempt. 
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« Reply #34 on: January 30, 2014, 02:47:31 PM »

Quote from: leo8877 on January 30, 2014, 03:21:07 AM

Quote from: gellar on January 29, 2014, 11:32:22 PM

Quote from: Isgrimnur on January 29, 2014, 07:59:21 PM

Washington, Alaska, Nevada, Wyoming, South Dakota, Texas, Tennessee, New Hampshire, Florida.

I've mulled this list over in my mind for years and there's still really only one state there I'd be willing to live.

Which one? 

Tennessee.
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« Reply #35 on: January 30, 2014, 04:51:54 PM »

Property Taxes are a large portion for some.

New Hampshire 61.3%
Vermont 42.1%
New Jersey 41.7%
Texas 41.6%
Rhode Island 41.1%
Michigan 39.3%
Connecticut 38.2%
Illinois 37.1%
Florida 36.8%
Wyoming 36.8%

Quote
Note: Includes residential and commercial real estate (mostly local revenue) as well as personal property taxes on cars, boats, etc. (mostly state revenue).

Sales Tax Top 10

Washington 62.1%
Nevada 58.2%
Tennessee 56.8%
South Dakota 54.1%
Arkansas 53.2%
Louisiana 53.0%
Hawaii 51.7%
Florida 49.0%
Arizona 48.4%
Alabama 47.8%

Income Tax Top 10

Oregon 44.1%
Maryland 39.7%
Massachusetts 35.6%
North Carolina 32.7%
New York 31.8%
Virginia 31.6%
California 30.8%
Minnesota 30.5%
Connecticut 30.0%
Ohio 29.9%

Quote
Note: States and localities generally lump wages, dividends, interest and capital gains together when applying their individual income taxes.

Top 10 Licenses

Alaska 52.6%
Delaware 34.1%
Wyoming 30.1%
North Dakota 20.7%
Montana 18.8%
Oklahoma 17.8%
New Mexico 17.5%
Nevada 14.3%
Oregon 12.6%
West Virginia 12.4%

Quote
Note: In license category, taxes are imposed on motor vehicle licenses, business or corporation licenses, and hunting or fishing licenses. In category of other taxes, major revenue sources are severance taxes (natural resources), stock transfer taxes, and estate/gift taxes.
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« Reply #36 on: January 30, 2014, 07:21:37 PM »

Quote from: rittchard on January 28, 2014, 06:28:22 PM

Yeah when we got it last year (CA) I was pretty bummed but what can you do.  The fact is it does make the competition more fair for companies like Best Buy and Target, not to mention the last remaining traditional book stores.  Still, even with the taxes, with free Prime shipping I'll still tend to go with Amazon out of convenience - and of course their pricing is almost always the best unless there's some sort of special/exclusive sale.

You know, if it means we keep a book store in town or a Best Buy I am willing to pay sales tax on Amazon purchases.
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« Reply #37 on: January 30, 2014, 08:39:26 PM »

Quote from: Scuzz on January 30, 2014, 07:21:37 PM

Quote from: rittchard on January 28, 2014, 06:28:22 PM

Yeah when we got it last year (CA) I was pretty bummed but what can you do.  The fact is it does make the competition more fair for companies like Best Buy and Target, not to mention the last remaining traditional book stores.  Still, even with the taxes, with free Prime shipping I'll still tend to go with Amazon out of convenience - and of course their pricing is almost always the best unless there's some sort of special/exclusive sale.

You know, if it means we keep a book store in town or a Best Buy I am willing to pay sales tax on Amazon purchases.

I can't remember the last time I walked into a brick and mortar book store.  But I'm sure when I did it was a Barnes & Nobles, so it's not like I was helping some small local business.
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« Reply #38 on: January 31, 2014, 06:38:53 AM »

Quote from: Scuzz on January 30, 2014, 07:21:37 PM

Quote from: rittchard on January 28, 2014, 06:28:22 PM

Yeah when we got it last year (CA) I was pretty bummed but what can you do.  The fact is it does make the competition more fair for companies like Best Buy and Target, not to mention the last remaining traditional book stores.  Still, even with the taxes, with free Prime shipping I'll still tend to go with Amazon out of convenience - and of course their pricing is almost always the best unless there's some sort of special/exclusive sale.

You know, if it means we keep a book store in town or a Best Buy I am willing to pay sales tax on Amazon purchases.

If you are hoping to keep that Best Buy, hopefully you are buying from them instead of just using them as a showroom like everyone else does.
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« Reply #39 on: January 31, 2014, 02:02:26 PM »

Screw Best Buy.  *Fist Shaking*
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