Amazon is going to have to collect sales tax in Indiana. My guess won't be long before other states do the same .
http://www.onlinenewsheardnow.com/in...n-in-2014/971/
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Amazon is going to have to collect sales tax in Indiana. My guess won't be long before other states do the same .
http://www.onlinenewsheardnow.com/in...n-in-2014/971/
"Remember back in the day, when things were made by hand, and people took pride in their work?"
- Rick Dale
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In my state, we're supposed to claim it and pay it on our state tax returns anyway. I'm sure most no one does. I do have to say that's it's an unfair advantage for online retailers and makes it that much harder for B&M stores (especially small locally owned stores) to compete. All in all, I'd like to see the playing field leveled a bit.
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I agree with that statement, but do not have a firm enough conviction to not take advantage of it......
Larry, the hypocrite.....
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Agreed, I'm in the same boat. As long as it's an option, however if the option disappears, I can't/won't complain.Originally Posted by Larry Edgerton
Contributor
What the heck is Amazon doing? They have been the #1 crusader against being required to collect sales tax and now they volunteer to collect sales tax in Indiana? Amazon has spent millions of dollars on legal fees to avoid having to collect sales tax in many states.
I think states are shooting themselves in the foot here. There are some items I would not purchase period if I had to pay sales tax because it pushes the price too high for me. I know lots of Internet users who won't buy stuff online if tax is collected even if it is just $4 or $5. They won't buy the item offline either. They simply skip the purchase.
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The law in Indiana is to take effect in 2014. B&M stores are saying this isn't soon enough. The Gov seemed to think this was a major accomplishment for his administration. Fact is that a company of Indiana shopping center gurus, had filed a suit to get this done. Other states are doing the tax with a few months lead time. Amazon convinced the Gov that it needed over a year to perfect the system. It's only fair to me. I'll buy from both B&M and online, just as I do now, depending on what I need and convenience. As it is now, I weight the cost of gas to Woodcraft or Rockler and the $$ required for a year of Amazon Prime to get "free" 2 day delivery to my door. It seems that a trip to the B&M stores often end up being more expensive because I usually purchase items that I hadn't planned to get.
Indiana expects to gain more than $20,000,000 annually in sales tax from Amazon.
Last edited by Ron Jones near Indy; 01-12-2012 at 7:22 PM.
________
Ron
"Individual commitment to a group effort--that is what makes a team work, a company work, a society work, a civilization work."
Vince Lombardi
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California also got Amazon to agree to start collecting sales tax in a year or so (not sure of the date). Seems reasonable to me although like the next guy I'd always rather pay less. Not sure how it will apply to smaller vendors -- does anyone know?
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The states aren't shooting themselve in the foot at all. If you order something, don't have to pay your state sales tax, they aren't getting anything anyway. If you don't order because you now have to pay sales tax, and choose not to buy it locally either, the outcome for the state is the same.
If $4-5 keeps you from buying an item, you certainly don't want it bad enough, and obviously don't need it either.
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We all know the day of internet sales being taxed upfront, instead of waiting for all of us to pay it at the end of the year, was coming.
Of all the laws Brandolini's may be the most universally true.
Deep thought for the day:
Your bandsaw weighs more when you leave the spring compressed instead of relieving the tension.
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why complain about the sell tax since the shipping cost are high ? will the tax be based on the purchase price before shipping cost or after shipping cost are added on ?
Member
Yes, California already went through this same thing.
Don't think for 1 minute though that the state cares about fairness between the online sellers and the B&M stores.
Member
I don't expect the states to care about that, but the benefit to B&M stores, particularly smaller B&M's is obvious.
Member
I am willing to bet that B&Ms will see almost a zero increase in business from this UNLESS they sell highly price protected items like Festool. Free shipping and no tax are about the only reasons to buy Festool across state lines unless one doesn't have a local supplier. This changes that situation but for most products that aren't price protected the large online sellers will probably still be able to provide a significant discount.
Of all the laws Brandolini's may be the most universally true.
Deep thought for the day:
Your bandsaw weighs more when you leave the spring compressed instead of relieving the tension.
Member
But it deffinately lessens the difference. Sure it won't make a difference for people that would throw the local store under bus because their still $3 higher, but the local stores will be still be happy to get any little bit of help they can.
Member
Here in the People's Republic of VT, they got around folks not reporting out of state purchases by requiring all taxpayers to pay a mandatory percentage of their income. Even if you made no out of state purchases over the course of the year, you pay a tax. Now if internet vendors start charging sales tax, you can bet that we'll all pay double until the good folks in Montpelier figure out how to deal with the fact that some (like Amazon) are collecting, while others may not be.......Double Jeopardy.
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