So what is all the ruckus on the news about the internet sales tax and Amazon pulling out on it’s 10,000 on-line affiliates in CA about? Apparently the California Governor Jerry Brown signed a tax collection bill this past Wednesday that forces California Amazon Affiliates, if they have in state business operations, to collect state sales tax for California to bridge a “perceived tax gap” between these on-line retailers and what the news is calling “Brick and Mordar” business… those with store fronts.
The argument is that these on-line retailers have an unfair advantage, because consumers get an almost instant %10 percent discount because they don’t have to pay Sales Tax (but don’t we have to pay shipping?).
I was wondering how this might effect us here in Texas and found this article from Daily Finance stating that amazon has offered to invest in $300 million in the state and help create 5,000 jobs in return for putting off making a similar bill law in Texas! All this is still on the table as I understand it right now, as far as Texas goes, but to my understanding not all the on-line affilites Amazon “cut-off” were big companies. Many of them were mom and pop stores that relied on business from Amazon.com to help pay their bills, at least that’s what Fox’s “Amazon to California” article painted a picture of. What if 10,000 or more (it a big state) lost income due to a similar tax law.
There are a lot of ways you can look at this problem… there are a lot of articles that can help you hash out who you think is right. But another good point my a buddy of mine made when I was telling him about the epic tale was that when you shop on-line… the break you get is because it’s not convenient… not as convenient as they’re painting it out to be. You have to wait a week or more to get what you want. Much different than walking into Wal-mart and walking out within an hour (if you can get out that fast).
They’re making it sound like on-line shoppers are in their cushy recliners getting instant gratification but the reality is that most on-line shoppers, me at-least, plan, wait and hunt. It’s not as convenient as they’re purporting. May the Gods smile upon our on-line purchases… for if we have a return… who knows what we may have to endure.
It’s a mixed bag! And it doesn’t help when you hear that this sales tax legislation for on-line purchases is being backed by Walmart… and the rabbit hole goes deeper.
Here are a few articles in case you want to check it out: