If you've got items sitting in your Amazon shopping cart that you've not yet purchased, you might want to consider moving into the checkout line.
Friday is the last day to buy from the online retailer tax-free: Amazon will begin charging sales tax on purchases for California residents this Saturday. Sales tax in the region varies, ranging from 7.25 percent in Roseville to 8.25 percent in Galt.
Up to now, buying online at Amazon.com saved customers money, since no sales tax was collected.
But state lawmakers in California–a state which desperately needs cash–reached an agreement last year with online retailers, including Amazon, who agreed to begin collecting a sales tax in September. Those sale tax funds will be returned to the state.
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.
The agreement between Amazon and California may not last long. The Orange County Register reports that the agreement between the two parties was primarily a compromise meant to get a year's reprieve in collecting the tax in exchange for promises to add jobs and distribution centers in California.
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, adding millions to state accounts.
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, and is close to signing a deal for 600,000 square feet in Sunnyvale.
Amazon is also expected to open two California fulfillment centers that will employ at least 1,000 workers each in San Bernardino and Patterson.
If you're interested in applying for those jobs, Amazon has set up a website to receive applications.
Do you think paying sales tax on Amazon.com is fair? Will it affect your shopping habits? Share your thoughts in the comments.
$423,000.00!!!!! Wow! For ipads???? The $423,000.00 ipads is just one of many bad ideas at this time. Where are the jobs needed to fund this? Raising taxes or making new taxes to pay for frivolous spending is not the answer! Cutting spending and a budget is. The gravy train is running dry.
since gas prices are high, this keeps me from driving around shopping and using my gas - still very good deals to be found.
Some of the iPads are used by "doctors, engineers and others in the field who my otherwise have to rely on more expensive laptops," the newspaper reported. But many more are in the hands of workers who have them as a "luxury," the newspaper reported. Eleven iPads bought by the Department of Motor Vehicles have been returned, according to the newspaper. But there's hundreds more that haven't.
The solution is for the California Legislature to get the financial health of this state back in line! Maybe, just maybe if we had more "industry" and businesses in this state, sales tax wouldn't have to be as high as it is!!
They were bought buy the tax payers and we can not sustain this type of spending.
Trust me. This state will never get back in line by raising taxes. And this aint nothing,, wait till cap & trade kicks in Ladys & Gentleman. As long as the liberals have there way with this state were DOOMED.
I do not hink just because a company is online, they should not have to pay the taxes the other businesses have to. If you that idiot who says were are doomed put your tin foil hat back on. And liberals ARE getting there way. Just look at the last two eight year term conservative presidents. Reagan left us with the biggest debt ever, more than all of the previous administrations combined, then George W left us exactly four years ago with 11 trillion in debt. That is what happens when you GROW the federal Government and lower taxes and cut social programs. But I am talking to a wall, I know!
CEO Magazine ranks the best and worst places to do business every year. California is usually at or near the bottom, as in 2012. Of the top 10 states, 9 have Republican governors and of the top 25, 20 are run by the GOP. Also note that many of these favored states are right to work states. No heavily unionized state ranks well. Of course, this is from a eewwwwww "business" perspective, not state worker pay, or teacher pay, or government giveaways. We rule in those categories. http://chiefexecutive.net/best-worst-states-for-business-2012
http://www.examiner.com/article/fox-news-poll-finds-more-people-are-better-off-now-than-they-were-a-year-ago
You honestly think blaming Bush with 11 trillion in debt is a winning argument when your own man, CPUSA/SPA extraordinaire and sealed Columbia University records "Barry Baraque Hussein 0Bama" shoved the USA 16 trillion into debt in less than four years? You are seriously coming to the table of debate with that argument?
http://www.youtube.com/watch?v=2ZyCK-GF9zU
This is NOT Amazons responsibility to pay state sales tax, it is the peoples. Amazon operates a business outside of California and purchases are made on-line. Just because I choose to purchase an item from somebody doesn't mean the state should get paid for that purchase. State sales taxes ,if required, should be on items puchased in the state, from businesses in the state! This law has the potential to escalate into farther reaching aspects of our lives. Do you believe the person holding a garage sale should be required to collect sales tax? Do you believe your friend at work should be required by the state to collect state sales taxes on you for buying his fishing pole? Where does it end? As long as the state can find a way to take our money, and we allow it, it won't end! Smarten up folks, we are over taxed and under represented.
Back to the subject: Personally, I'd like to see the small and large businesses (and their employees) do well in our state. Leveling the playing field with sales tax is ALL this topic was about. It bugs me that we have to pay sales tax when we buy a used item like a car. However, if I really want to complain about it, then I need to get involved with electing people who support revamping the tax code. It needs to be adjusted so that everyone pays their fair share. It also bothers me that the underground economy puts more of the tax burden on people with traditional jobs or retired people (i.e., paychecks with taxes withheld). From contractors to nail salons, there are many who bypass paying their fair share. Unfortunately, the burden falls on others.
And I wonder if you even looked at the article: "CEOs were asked to grade states in which they do business among a variety of areas, including tax and regulation, quality of workforce and living environment." @Kathleen: " Leveling the playing field with sales tax is ALL this topic was about. It bugs me that we have to pay sales tax when we buy a used item like a car. However, if I really want to complain about it, then I need to get involved with electing people who support revamping the tax code. It needs to be adjusted so that everyone pays their fair share." Yes. This is the only rational approach. Thank you.
By the way ... I love this statement ... "I think the quality of life is better in parts of Florida, Utah, Tennessee and North Carolina, for example." Parts? I'm willing to bet the quality of life in parts of California top the quality of life in parts of those states as well. I think you could have done better.