Amazon and other online retailers: Sales Tax Cometh

[motion]

Starting Sept 15, Amazon and other online retailers will start charging sales tax in California. This really saddens me, and they will lose A LOT of business from me. I will do almost anything to avoid paying sales tax to the state of CA. My strategy will be to order expensive stuff and have it delivered to Montana (no sales tax). I'll have my neighbor retrieve it and ship it to me in CA. For computers and other high dollar stuff, that 8% adds up fast.

Incidentally, I'm an Amazon Affiliate, and have noticed that sales during the past few weeks are off the charts. People are stocking up now.

[Rick Lee]

I try very hard to avoid sales tax too. Just about every dime I spend in CA is expensed, so I don't care too much about that. In AZ, however, just about the only things I buy in stores are booze, smokes and groceries. Everything else I order online. And we have no sales tax on private party vehicle sales. That saved me a grand on my previous bike.

[Porsche-O-Phile]

If CA finds out about it or suspects it, they'll hit you with a "use tax". I believe a few people here have already been through this with property purchased out of state and then brought in.

There's a lot of advantage to living in NH. I miss a lot of things about CA but the confiscatory tax structure certainly isn't among them.

[jyl]

I think it is high time that online retailers were required to charge sales tax. They have enjoyed this advantage over physical retailers for long enough.

Whether you like sales tax or not, it doesn't make sense for one merchant to be subject to it and another not.

Of course, there is no sales tax in Oregon, so I don't have a dog in this fight.

[motion]

Originally Posted by Porsche-O-Phile

If CA finds out about it or suspects it, they'll hit you with a "use tax". I believe a few people here have already been through this with property purchased out of state and then brought in.

There's a lot of advantage to living in NH. I miss a lot of things about CA but the confiscatory tax structure certainly isn't among them.

Really? So, if you drive your U-Haul into California, because you're moving there, you have to pay use tax on all your belongings?

[Rick Lee]

Originally Posted by jyl

I think it is high time that online retailers were required to charge sales tax. They have enjoyed this advantage over physical retailers for long enough.

Whether you like sales tax or not, it doesn't make sense for one merchant to be subject to it and another not.

Of course, there is no sales tax in Oregon, so I don't have a dog in this fight.

I disagree for the most part. Someone selling parts or used clothes out of their house is not using any services outside their state/locality. A brick and mortar business has police, fire, garbage, EMS service, etc. AFAIK, you usually have to pay sales tax if the vendor has a physical location in your state. I can order a guitar from any Guitar Center in the county or an appliance from any Wal-Mart in the country and have to pay AZ state and local sales tax.

One of Wayne's competitors is based in Phoenix, but doesn't allow in-person pickup, which means I have to pay shipping and sales tax. So going to Pelican is a no brainer.

[jyl]

Online merchants are big operations with offices, warehouses, logistics networks, server farms, data lines, supply chains. They use tons of roads, utilities, safety services, etc. Amazon has a bigger footprint than most bricks and mortar retailers.

The mythical guy selling used stuff from his house, sure he doesn't have much of a footprint, but he has some. He probably thinks the fire department will come if his warehouse aka spare bedroom is on fire.

[Zeke]

Originally Posted by motion

Really? So, if you drive your U-Haul into California, because you're moving there, you have to pay use tax on all your belongings?

No, silly, there is a statute on that. What you're doing with the imaginary computers is illegal in the eyes of the State Board of Equalization (where'd they come up with that name?). But if you were a recent resident of another state, purchased your goods and then moved here, you're free of tax. If you live here and buy out of state, you pay tax.

Actually, since you are a MT and CA resident and are moving your personal property back and forth, that's a gray area. But having the neighbor ship brand new merchandise to you is not. I think if you wait for some period, it's off the radar. You'd have to do a lot of that to get on the radar to begin with.

Amazon reached their agreement with CA last year. It has been coming. Other companies with physical outlets in CA have been charging ST all along. Now, everyone has to charge it. The b!tch is paying the ST to all the states that want to collect it. I don't see how it will ever get sorted out, but someday all the online sales companies are going to get audited by all states that have ST and will send a bill.

[Porsche-O-Phile]

Originally Posted by motion

Really? So, if you drive your U-Haul into California, because you're moving there, you have to pay use tax on all your belongings?

I'm not sure about your specific example, but I'd say "possibly". Here's some more information to get started...

California Use Tax Information - Board of Equalization

I think a few folks on this board have gotten love notes from the Franchise Tax Board about use tax obligations - I'm hoping one or more of them might chime in. Unfortunately it looks like the FAQ link on the page above isn't working, which might also answer more specifics.

[RWebb]

In Oregon, the mythical guy selling used stuff from his house, who doesn't have much of a footprint, will be hit hard if he has to deal with sales tax collections.

Look for some modification bills to be introduced by Oregon legislators soon to (somehow) make states do the work.