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"California is the seventh and largest state in the country to pass a law to collect taxes on out-of-state Internet sales. Illinois, Arkansas and Connecticut acted earlier this year, North Carolina and Rhode Island in 2009 and New York in 2008. Amazon sued to overturn the New York law and lost in the lower courts. The company is paying sales taxes into an escrow account pending an appeal.
Other states currently are considering similar sales tax collection bills."
I imagine that the various California companies can run for now, but sooner or later whatever state they land in will pass the same law. State budgets are struggling, and this is a quick and easy way to refill the coffers.
Note that the deal Amazon is proposing to Texas only delays Amazon having to pay the internet sales tax until 2016 (just like the deal they made with South Carolina).
Affliates will be told to leave the state and go to Texas or Colorado, anywhere not CA.
This will cut jobs in an already horrible California job market so they can yield a higher short term tax increase.
On the other hand, Walmart will be happy.
Walmart.com already charges tax on internet purchases.
With that said, this is a new trend (states passing laws on e commerce). Texas and Arizona, and the other 47 states will soon follow California. The wild west days of the internet are slowly coming to an end.
With that said, this is a new trend (states passing laws on e commerce). Texas and Arizona, and the other 47 states will soon follow California. The wild west days of the internet are slowly coming to an end.
Walmart has a physical presence in, I imagine, all fifty states.
I utterly agree with your second sentence. Now that California has done it, the rest will soon follow.
ALL states with sales tax are/will be looking into this. It's not a new issue. Unfortunately it's been shown that passing such a law rarely results in increased revenue for the state. As in CA, it's used as a budgeting trick more often than not.
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