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Sales Tax for Amazon Begins Soon

The online retailer will levy state tax on mail-order purchases beginning Sept. 15. That will add more to the cost of each purchase. It that fair? Or overdue?

 

On Sept. 15 Amazon.com will begin charging sales tax on purchases for California residents.

Up to now, buying online at Amazon.com was cheaper than buying in a store, since no sales tax was collected.

But state lawmakers in California — in desperate need of cash — reached an agreement last year with online retailers, including Amazon, who agreed to begin collecting a sales tax in September.

According to the LA Times, about half of the projected $316 million raised in the first full year — and put into state coffers — is expected to come from merchandise sold by Amazon.

Increased prices for online purchases is welcome relief for brick-and-mortar stores, who feel the playing field for customers will be a bit more level.

CNNMoney says Amazon already charges sales tax in six states: Kansas, Kentucky, New York, North Dakota, Texas and Washington.

Pennsylvania will join California in sales tax charges in September.

New Jersey, Virginia, Indiana, Nevada, Tennessee and South Carolina are all expected to collect state sales taxes from online retailers within the next few years.

States estimate they lose $23 billion in annual sales taxes, some $11.5 billion of it from online purchases, according to the National Conference of State Legislatures.

Meanwhile, Seattle-based Amazon has been expanding its physical presence in California, according to the San Francisco Chronicle. The Chronicle says that in June, it leased 83,000 square feet just south of San Francisco's Financial District.

If you're interested in applying for those jobs, Amazon has set up a website to receive applications.

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Share something with your neighbors. Write a new post... What's up? Make an announcement, speak your mind, or sell something
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David Ross May 19, 2013 at 09:47 am
Another problem: When notified of a reply to a comment I could click the link in the email to go toRead More the article. That was not possible this time. So because a small minority zooms there computer the layout should be as it is? I don't think so. All that white space means that an article that could be read with just one or two clicks to scroll through is now going to take more scrolling to view. One thing that seems to be missing in today's world are web designers who (1) change the layout just because and (2) web designers who have neglected to consider the audience. The more I look at this layout the less I like it. The font needs to be darker than it is. the blue (like in "announcements") needs to be bolder. Overall, on a scale of 1 to 10 (10 best), I rank the new "improved" design a 3.
anthony May 19, 2013 at 08:21 am
was on my father's laptop and he zooms his screen to 125...didn't need to keep bumping the pageRead More right and left, kinda liked it then.
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