Amazon Strikes A Deal On California State Taxes

[engine]

Amazon Strikes A Deal On California State Taxes [latimes.com]

Amazon.com cut a tentative deal with legislative leaders Wednesday night that would allow it to postpone collecting sales taxes from Californians for another year.

The company in turn would drop its battle to overturn the state's new law that required it and many other out-of-state online retailers to collect the taxes.

"It's a safe harbor for up to a year," Calderon said of the agreement he helped strike. "If they can't get Congress to act by next July, then they will start to collect the tax in September 2012. If by chance they get Congress to act, then that would trump the state law."

[travelin cat]

So does this mean Amazon will re-activate California affiliate accounts?

[dpd1]

I'm sure they'll take their time, because most people probably didn't bother to take the ads down, so they were getting free advertising the whole time.

But I love that they will probably put this through, AFTER Brown rejected the new distribution centers. Brilliant.

[Marshall]

If they can't get Congress to act

Congress to act? That's funny. But then again, being there's a Republican majority and it's not taxing the rich, they probably would vote on that tax. This isn't a political statement, just a matter of fact based on the Congressional Record.

Marshall

[Propools]

I wonder what precedent this will set for other companies to make the same sort of "deal"?

[Marshall]

I wonder what precedent this will set for other companies to make the same sort of "deal"?

Unless a large company like Amazon acts on behalf of smaller companies, or there is a class action suit, I suspect the odds are slim. How often have you heard "Ma and Pa Public struck a deal with the government." The best a smaller company can do at this point without incurring thousands in legal fees, is cite the precedent set by Amazon and hope for the best.

Marshall

[Propools]

Marshall - I wonder how effectively, rather than filing any suits; the social media may be able to impact this.

[Marshall]

Good point propools, but I feel compelled to reiterate what I said earlier

But then again, being there's a Republican majority and it's not taxing the rich...

I watched the President' address last night and noticed any time there was a mention of taxing the rich, even with the President citing Warren Buffet's op-ed piece ("Stop Coddling the Super-Rich," NY Times), the Democracies stood up and applauded and the Republicans sat silent. Without meaning to sound political, I stand by my earlier comment that the current climate in Washington is not conducive to the little guy.

Marshall

[tangor]

Amazon will cave, what's current in "negotiations" is a moratorium for taxes until 2014. Only thing that will change, should it happen, is a Federal Internet Tax which bill proposals are in project at the moment. One of those wait and see kind of things.

[Swanny007]

So do you guys in the US not have to pay tax on any Amazon purchases?

In Canada if we buy from Amazon we pay the federal tax, it's no big deal. We don't have to pay provincial tax though, which seems to be the same issue that you guys are having...

[dpd1]

Well, just got my invite to "re-enroll". It's a good thing they made it easy, otherwise I wouldn't have bothered. And of course they conveniently are not paying for any referrals that happened while they had it down. But I guess now I can again look forward to my whopping $30 or so a year.