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In response to recent legislation in Colorado (HB 10-1193), Amazon.com has sent a letter to its affiliates in Colorado informing them that the on-line sales giant will no longer be advertising through businesses in the state that that make money by referring buyers.
go after internet sales tax and punish the people trying to earn a living
I assume there are other costs associated with operating an online venture that brick and mortars do not have to shoulder
Brick and mortars have the advantage of being able to offer instant gratification to customers who want a product sooner rather than later.
Colorado is not alone. Fifteen other states have considered or are considering enacting laws targeting Amazon and other e-commerce companies that typically do not charge sales tax for shipments sent outside their home state
Bennett Kelley of the Internet Law Center says: “Merchants should not rush to follow Amazon’s lead since the “affiliate nexus” provision that has defined “Amazon Tax” bills to date has been stripped from the new law such that having in-state affiliates does not trigger any tax liability.
The problem is unless the buyer and seller are in the same state it really shouldn't be a state sales tax.
According to current law, only the primary residence of the buyer matters.
the idea of federal legislation to equalize sales taxes, since such legislation would clearly infringe on State's rights.
During a recession, with over 10% real unemployment in this country, states are forcing small businesses OUT OF BUSINESS by creating new taxes?
If you make such a purchase and then use, give away, store, or otherwise consume the item in California, you may owe California use tax. This is true whether you order the item over the Internet, by telephone, or by mail. The use tax rate for any California location is the same as the sales tax rate. ... If the out-of-state retailer does not collect the California tax which is due on your purchase, you are required to report and pay use tax.
The feds are already involved with interstate commerce authorized under Article I of the U.S. Constitution...So technically applying a flat interstate tax to keep goods and services moving via ecommerce isn't a far stretch IMO.