Amazon To Start Collecting Sales Tax In Texas

Starting in July, shoppers in Texas will no longer have to go through the hassle of calculating and paying all that sales tax that Amazon hasn’t been collecting on their purchases. On Friday, the Lone Star State joined a growing group of states reaching accords with the online giant about making sure those taxes get collected at the time of purchase.

Amazon has avoided the pesky business of collecting sales tax in Texas (and many other states) through a law that says a retailer is only responsible for collecting the tax if it has a physical presence in that state.

The definition of “physical presence” is what has been argued about over the last few years. Some states have enacted legislation determining that Amazon’s affiliate program, which allows third-party merchants — including bricks-and-mortar retailers — to use Amazon.com as a storefront for their wares, is tantamount to having a physical presence. In most of the states that have created such laws, Amazon has merely cut ties with local affiliates.

Then there are those states that have claimed that the existence of an Amazon non-retail distribution center within their borders means the company must collect sales tax. In Texas, Amazon actually closed a distribution center in 2011 after the state claimed the company owed $269 million in uncollected sales tax.

The agreement announced Friday seeks to resolve both the tax and job-loss issues by including a promise from Amazon to create 2,500 jobs in Texas and make $200 million worth of capital investment in the state.

This news comes right on the heels of an agreement between Amazon and the state of Nevada to begin collecting sales tax in January 2014.

While we’re on the topic of Amazon and sales tax, a trial judge in Illinois surprised a lot of people by ruling that a new state law requiring the e-tailer to collect sales tax because of the presence of Illinois affiliates violates the Commerce Clause of the U.S. Constitution.

Amazon, Texas reach sales tax deal [ChicagoTribune.com]

Comments

Edit Your Comment

  1. Draw2much says:

    Pretty soon, the only States Amazon will have warehouses in will be the ones that don’t collect Sales tax to begin with. (Not to worry, I’m sure the property taxes will be through the roof to make up for it. :D)

    I dunno, this is just me but… it seems a bit silly to demand “back taxes”. Technically, up until they passed that law, it was the buyers responsibility to pay those taxes, not Amazon’s. It seems a bit… well…. shady… to demand they back taxes like that.

    My only wish is that if we’re going to be paying sales tax, how about we just include it in the advertised price? It’s annoying having it tacked on with shipping. Japan had all the taxes rolled into the price, I got use to that when I lived there. I miss it. If they can do it, why can’t we? :-/

    • Torgonius wants an edit button says:

      Sales tax varies between states, counties, cities and even parts of cities in some places.

      Building a database to contain that information is not a huge technical accomplishment.

      Maintaining the accuracy of the data would be labor intensive (expensive). Who pays for that? Federal Government? Why should citizens of states with no sales tax have to fund it? State Governments? We need to spend the money on (entitlement program) this year. See us next year, just like we’ve been telling the pension funds.

      • TheUncleBob says:

        Actually, to help answer your question of “Who pays for it?” – 26 states allow retailers to keep a small portion of all taxes collected. In Illinois, this portion is 1.75%.

        With regards to your concerns about having to keep track of the multiple tax rates, A) Walmart – via walmart.com – does this without issue. B) Nintendo – via their 3DS eShop – also does this without issue.

        • gman863 says:

          In Texas, the merchant “discount” on sales tax payments is half a percent of the taxes collected, so long as the payment is made on or before the due date.

          In other words, if I owe the state $1,000 in sales taxes for the previous quarter, I end up paying $995.00 so long as they’re paid by the 20th of the month.

          Yawn…

      • maxamus2 says:

        Yep, sales tax varies a lot. I have to drive 12 miles to get to Home Depot but it is in a different county, a county that has added on all sorts of sales taxes to pay for roads, tourism, schools, etc…

        My county is 6% and that county is 9%. So for any purchases where they offer free shipping it is better to have it delivered as I only get charged 6%. That made a huge difference when I had to buy a $1200 refrigerator recently, I saved $36 by ordering instead of placing order in store where they would have dinged me an extra 3%.

        But, all that said, it is not difficult for places like Amazon to have a database of all the sales tax rates of each city, I mean, much smaller companies do it.

        • George4478 says:

          There are around 6500 taxing districts in the country. Amazon would have to track the rates and the rules (just maintaining the list of food items which may/may not be subject to tax is a huge deal) for taxation in every single district. And keep them all up-to-date for the thousands of monthly, quarterly, and annual changes.

          Name one other company who does that. I can’t think of any.

          • MaxH42 thinks RecordStoreToughGuy got a raw deal says:

            7-Eleven has more locations than McDonald’s, and sells a combination of grocery and retail items.

          • pythonspam says:

            I think a good deal of companies do this. It may be transparent for a lot of consumers and employees, but at our small company (that sells across the US and Canada) we get one of these monthly,

            “Team,
            On Saturday, March 31st, IT will be updating the tax rates for April. During this process, [billing computer system] will be unavailable for use.

            We expect to have all work completed before 9:00 AM EST on Saturday; we will notify everyone as soon as the tax update is complete and the system is available for general use.”

      • JJFIII says:

        Who pays for that? Hmm, the same one that pays for accurate pricing in their stores. THE COMPANY. It is expensive to maintain airplanes, and no company asks the FAA to pay for it. The company that wants business in a state will spend the money necessary to do it. Brick and mortar stores have done it for YEARS

      • esc27 says:

        Just pay for the database with a portion of the sales tax dollars and make the state/localities responsible for maintaining their tax data (and liable for mistakes…)

      • cowboyesfan says:

        Not all items are taxed. Depends on each state.

    • az123 says:

      The reality is that for most online sales they are only going to collect the state tax, not the local city sales tax etc… There is logic behind this, going to the home depot example below… Even if Amazon had a physical location in your state it could be in a low cost area so if you could buy at that location then it would be at that level, so Amazon could claim any transaction that takes place is at their location and thus you pay that tax.

      Anyway without going into the billions of complex ways to do things, most stores do only charge online tax for the state and not the city. This is why when I make any major purchases at stores that have “pick up in store” options I will often order online, I can save 2% many times just not paying the city sales tax.

      • AustinTXProgrammer says:

        That has never worked in Texas, at least not to my knowledge. Whether I order from Dell, Best buy, or anywhere else that collects sales tax they will often even ask whether or not I am in the city limits (Zip code spans both) to determine the tax rate.

  2. Southern says:

    Wow.. SOOOO glad I put off buying Amazon Prime yesterday.

    • mh1723 says:

      Have to say, while this sucks and I’m happy I just made a big purchase now, Amazon Prime is worth it. The money you will save in shipping will more than likely offset the sales tax. Shipping is usually more expensive especially if you buy things often and if those things you buy are heavy and bulky.

    • c_c says:

      The free 2-day shipping (which I argue saves me on gas – 2 days is sufficiently short enough that I can avoid many trips to Lowes/Target/etc. for stuff that I need relatively soon), combined with the fact that prices on Amazon are often cheaper than B&M/other online stores, and the free streaming tv/movies, I’d say it’s still worth it…

  3. sendmoney2me says:

    with the economy the way it is i wish they’d go the other way and get rid of sales tax across the board…but that will never happy cause then our government would have less money to waste away on stupid things

    • Carlos Spicy Weiner says:

      You like clean air and water? Can’t afford private school? House on fire? Like you, I think the government is a wasteful bureaucracy as far as the exact way they provide services, but try getting along without it. Yous gots to pay for it somehow, and one reason state governments are hurting so much is the big drop in sales tax caused by the Great Recession.

    • Stickdude says:

      Time to insert the obligatory “If you don’t agree with how the government spends every single cent you’re always free to move to Somalia” comment…

      Figured I’d save the regulars some time. You’re welcome.

    • vivalakellye says:

      Texas doesn’t have a state income tax. The only way many cities can keep afloat is through sales and property tax.

    • Jawaka says:

      I agree, paying for cops, firemen, education, repair to roads, etc… is such an abuse of my money.

    • Extended-Warranty says:

      Sales tax needs to stay. It’s one of the few taxes that is hard to evade. There’s too many loopholes in income taxes.

  4. doctor_cos wants you to remain calm says:

    Rent PO box in Delaware. Have items ship to Delaware (no sales tax). Ship from there to your home (not a purchase). No problem.

    States can stick their ‘use tax’ up their ass. You want to make it ‘fair’ then fix this:
    It’s a “Use tax”…
    If I live in OH and buy clothes in PA (no sales tax on clothes), I am supposed to pay OH tax when I bring them home to OH.
    It’s a “Sales tax”…
    If I live in PA (again, no sales tax on clothes) and buy clothes in OH, they don’t refund the tax when I take the clothes home to PA.

    Pick one, not both.

    • JJFIII says:

      So you want to pay $45 a year AND shipping from Delaware to save a few pennies per dollar? Talk about jumping over dollars to save nickels. If you do not like paying sales or use tax, DONT BUY STUFF. Wow was that hard or what

    • Ivory Bill says:

      There is a bunch of braying on this thread by people who are completely ignorant of sales/use taxes and how they work.

      In your example, once you take your old clothes to your new home, the use tax would be calculated on their fair market value *at the time they were taken to your new state.* That is BEFORE the credit for sales or use taxes legitimately paid to another state is calculated. There is no double taxation, which is what you seem to be getting at.

      Many years ago, I was the individual who developed a system for calculating local and state sales/use taxes in the 26 or so states (and their internal political subdivisions) that my employer did business in. It was costly for my employer to do this, but it was much cheaper than the taxes and interest that the company had been paying every time a state audited them.

      Nobody likes to pay taxes, but the system where stuff is shipped tax off with impunity puts local businesses who do pay taxes at a competitive disadvantage. Taxes are one of the prices we pay for living in a civilized society.

      • Southern says:

        So if I were born and raised in Oregon, which doesn’t have a sales tax, and after 50 years decide to move to Texas, I would owe Texas a “use tax” on the ENTIRE CONTENTS OF MY HOME.

        Doesn’t sound fair to me.

      • doctor_cos wants you to remain calm says:

        Your ‘competitive advantage’ argument is complete bull. These taxes are advantageous to the state governments period.
        Is it a ‘competitive advantage’ that (pay attention, let me explain this one more time),,,
        J lives in Ohio just across the border from PA. She can drive 20 miles further into Ohio to buy clothes at Target. Or she can drive into PA and then about 4 miles to buy the SAME clothes at Target. Since she bought them in PA, there is no ‘sales’ tax on them. But as soon as she brings these NEW clothes back home in OH, the state insists that she must pay a ‘use’ tax on them.
        K lives in PA just across the border from OH and doesn’t like Target. So she drives 5 miles into Ohio and buys the same clothes at Wally World and pays sales tax on them. By the same argument Ohio makes for having to pay this ‘use’ tax, they should then refund the sales tax to K, as she is taking the clothes back home to PA.
        Does Target care which store J shops in? Probably not.
        Does Wallyworld care? Probably not.
        Where is the competitive disadvantage you and your taxing overlords speak of?

        Let me simplify this even further for you. Amazon has a competitive advantage over most B&M retailers because of pricing and selection.

        Explain to me EXACTLY WHAT THE STATE DOES that they are entitled to this ‘use’ tax.

      • arcticJKL says:

        Except you forget taxing interstate commerce is illegal for states.

    • Southern says:

      Yes, you would almost certainly pay more for re-shipping than you would have paid for sales tax in the first place, except perhaps in the case of small, expensive items.

  5. abucsfan says:

    You know, there really isn’t a good reason not to. Amazon has a presence in every state.

    • Southern says:

      Not true at all. Amazon actually only has a physical presence in 14 states, and 9 of those only have distribution centers.

  6. oldgraygeek says:

    SO glad we live in Delaware.

    • consumed says:

      People actually live in Delaware? I thought that state solely existed for corporations to exist in.

    • c_c says:

      I’m sure it evens out … TX doesn’t have income tax, for example.
      In fact, in recent year it looks like Delaware is ranked in the low-ish 20’s as far has having the highest overall state/local tax burden, so while you may save $$ by not paying sales taxes, you’re making up for it elsewhere. Interestingly, DE used to be in the 40’s, curious what caused such a shift in ~10 years (increasing DE rates or decreasing rates in other states?).

      http://www.taxfoundation.org/taxdata/show/336.html

  7. ablestmage says:

    I live in Texas and buy things of Amazon occasionally. I have never heard of the “calculate your own and pay later” nonsense this article discusses. I’m not responsible for paying sales tax to the government — the business is.

    • thenutman69321 says:

      Haha that “nonsense” you’re talking about is the law. You are legally required to pay all taxes yourself for all online purchases come tax season. Of course no one does but it is still required.

    • humphrmi says:
    • az123 says:

      This is pretty much the law in every state actually. Some have started putting it on their income tax forms in order to start collecting with the increase in online shopping. For years most had the law but basically did not enforce it.

      Here they put it on our tax forms starting this year, but it is basically on the honor system, they tell you the state tax rate and say calculate based on online purchase you made and did not pay taxes on. Smart money is to toss some small amount on there just to make it look good, but probably less than owed, just to avoid getting audited or flagged. They claimed it is there to remind people they are suppose to pay it, but I think it was mostly they figured most people would put something on there because of fear of auditing and thus the state does get a little of its money.

      Does not really matter, I don’t shop online to save sales tax, I do it because it is more convenient and also the prices are considerably cheaper. If Amazon started charging tax in my state I would guess that it would impact less than 10% of my purchasing decisions

    • Doubting thomas says:

      wrong.
      State law says you owe the tax. Businesses collect taxes for you because it is simpler and more efficient (also harder to under-report). However if they do not they law says you still owe the tax.
      Just stating that it is the business’s responsibility does not make it so.

    • MrEvil says:

      There’s actually a form you can get from the comptroller’s office that will allow you to remit your use tax. Any business currently collecting sales tax from the state also has to pay this on any items they purchased from out of state and are using in a not for resale capacity.

  8. nbs2 says:

    *sigh* and we’re possibly relocating to TX. Of course, the drop in state income tax should make it a little easer to absorb.

    • bomber991 says:

      I don’t know how much income tax is in other states, but any money you spend, besides at the grocery store or buying gas, is taxed 8.25%. It’s pretty much like in addition to whatever you’re taxed on your paycheck, now you’re taxed an additional 8.25%. I guess states with state income tax still have a 6% sales tax though too.

      Taxed when you make the money, taxed when you spend it. Every time money changes hand the government wants a piece of it.

      • tungstencoil says:

        Except we don’t have sales tax on food, and most other states that have income tax still have a sales tax (yes, there are a couple of notable exceptions).

        For my partner and I, having lived in CA, MI, VA, and TX, it ends up giving us more disposable income living in TX.

      • AustinTXProgrammer says:

        Sales tax isn’t charged on groceries or gas (which has it’s own per gallon tax which is less than the sales tax would be at today’s prices). And since there is no income tax we get to take an estimated (or exact if you are really meticulous) deduction on our income taxes for sales taxes paid through the year (if itemizing).

    • cowboyesfan says:

      Wait until you see how much property taxes and insurance are.

  9. rockelscorcho says:

    I live in TX..this sucks ass. I hope Amazon turns around and leaves the state. I know that effects a lot of people, and this is nothing about the small change on taxes..it’s about telling the state the fuck off. Texas government is ass backwards!

    • Southern says:

      Amazon doesn’t have a presence in the state. They closed their warehouse/distribution center when this hub-bub all started, but TX sent them a bill for $269 Million anyway.

      What this “Deal” does is wipe the slate clean; TX wipes out the $269 Million bill for back taxes, Amazon moves their distribution center BACK into the state, and then starts collecting sales tax from this point forward.

  10. bitplayer says:

    The Gov. runs on low taxes but he does support tax increases, on the local level due to his cuts and through nickel and diming people like this.

  11. SeattleSeven says:

    (Re-post from other Amazon thread)

    Okay everyone! Are you ready for the big secret?

    When you find the item you want on Amazon, Below the price and the big green IN STOCK! text there is that little link that says “34 New from $2.99″ or whatever. Once you click on that, you’ll be in the magical world of amazon merchants. In the world of amazon merchants you’ll find lists and lists of people who sell you the item you want, for the same price or less than amazon does and they are not based in your state, so they don’t charge you sales tax.

    As an added bonus most provide “Fulfillment by Amazon” which means you still get amazon prime or super saver shipping or whatever. It is just like buying from Amazon but sales tax free!

    You’re welcome.

    (and before the haters start commenting about use taxes again)

    You are then free to calculate use tax on your purchases and pay the appropriate taxing authority in accordance with the law.

    • bravohotel01 says:

      FTW!

    • icerabbit says:

      Most merchants are actually not in the system of fulfilled by Amazon nor offer free shipping. Typically You may find a slightly cheaper merchant, but the shipping kills it if you have prime

    • c_c says:

      Except shipping from merchants often would offset the tax paid when buying from Amazon (especially for lower priced items).

      • c_c says:

        Just read your part about “fufilled by Amazon” … in my experience it’s often not the case that third-party merchants offer this; especially with the ones that have list prices comparable to the Amazon price.

  12. Conformist138 says:

    Living in Oregon, I get to kick back with some popcorn and watch the arguments without having any stake in them.

    If you are so desperate to not pay sales tax, you could always join us in the states that don’t have them. Of course, money still has to come from somewhere, so we make the landowners pay extra.

    • SeattleSeven says:

      Living in Vancouver, WA is how you win the tax game. No income tax in WA and sales tax free shopping in Portland.

      • stevenpdx says:

        As long as you work in Washington too, of course.

        I lived in Vancouver but worked in Oregon for a couple of years. Had to pay Oregon income tax anyhow because of that.

    • Chris says:

      How much are property taxes in Oregon? It’s typically around 2.4-3.0% of the value of the house in the Houston area after a homestead exemption is taken into account.

  13. GoldVRod says:

    I have an Amazon affiliate account (I don’t live in TX though).

    I don’t know how ANY state can consider me an employee of Amazon – I’m not. Nor how they can consider what I do a ‘physical presence’. When someone buys something off Amazon through my affiliate website I don’t ship anything. I don’t pack it. I never see the item. It’s not in my state – I just take a check for acting as an advertising body.

    I’m no more a employee than someone who recommends DirecTV to their friends for a $100 credit or any other one of the thousands of affiliate links – Netflix, Groupon, Paypal etc all have affiliate bonuses.

    • Southern says:

      I don’t know how ANY state can consider me an employee of Amazon – I’m not. Nor how they can consider what I do a ‘physical presence’.

      They do it because it’s the only way they can sidestep the Constitution and the commerce clause to try and collect sales tax from out of state businesses.

      What (all these states) are doing is *completely* unfair to Amazon though, because they’re singling them out. They haven’t gone after Newegg, or Buy.Com, or “Karen Joseph” who sells homemade candles on her little small home based website (name & business totally fictitious).

      • Southern says:

        Please ignore my previous comment. Based on additional research, I no longer believe this to be the case.

    • Extended-Warranty says:

      I would definitely see you as an employee per se. Just because the internet has evolved, and new ways to buy and sell have come up, this doesn’t mean we should completely forget the very INTENT of sales taxes.

      Because we all know what happens if we don’t tax affiliate sales. Suddenly, every company exploits the loophole, and we only see sales from affiliates.

  14. jp7570-1 says:

    And you know that Rick “Gov. GoodHair” Perry will take credit for this. Credit for sucking another 8.75% from his constituents.

    • gman863 says:

      Plus he won’t spend a dime of it on education, public safety and all the other things he’s been cutting to balance the budget without dipping into the mulyi-billion dollar “rainy day” fund.

    • thewriteguy says:

      He’s a hypocritical POS who only got the governorship after being anointed by Dubya, and keeps getting re-elected due to being a so-called Republican.

  15. skitzogreg says:

    Does Amazon have a list of states where they automatically charge sales tax to?

  16. BeFrugalNotCheap says:

    What are you people bitching about? It’s not like the government is going to STOP with this plan. Like in Vegas: The house ALWAYS wins. You don’t have a voice. So please go back to marking the days off until the next batman movie comes out and overpaying for coffee at $tarbucks and be quiet. Thank you.

  17. gman863 says:

    I frequently buy smaller electronic items (HDMI cables, Notebook PC power adapters, etc.) on Amazon for resale in my computer store. Since I charge tax to the retail customer, up until now it’s been no hassle.

    On July 1, it’s going to turn into a clusterfuck.

    (Per what’s posted at Amazon.com on tax-exempt purchases…)

    * If the item is sold directly by Amazon.com, LLC, I can e-mail or fax my merchant resale certificate and it will be kept on file (same as my other wholesalers) – however, I have to watch my orders carefully and may have to fax or e-mail a request for refund of the sales tax.

    * If an item is sold by Amazon and fulfilled/shipped by another merchant, I am charged tax by default and have to e-mail or fax a copy of my resale certificate with a copy of the invoice on each separate order, one at a time.

    As an example, I order $200 in items that Amazon splits into four separate sub-orders since – depending on the item – four separate companies are shipping four separate orders

    ** Print out EACH sub-order and print it or save it as a .pdf file.
    ** Keep a copy of my tax ID# saved as a PDF file or attached to a fax cover sheet.
    ** E-mail or fax a copy of each sub-order plus a separate copy of my resale certificate for each order.
    ** Hope Amazon actually applies the tax credit.
    ** Net is about an hour of bookkeeping, e-mails and faxing to get about $16 in taxes back.

    I don’t think Amazon has a clue as to how many small businesses like mine purchase from them on-line. As they start taxing in more states, they’d better make their resale tax exemption process easier or they’re going to lose a shit load of business.

    • AustinTXProgrammer says:

      It’s been a long time since I had to pay sales taxes (as a reseller) but I seem to remember there being a line item to use credit for taxes paid through other retailers. As long as you keep the detailed records you could almost always pay sales tax and then take it as a credit. This probably increases the chances of a sales tax audit, I don’t really know.

  18. Blueskylaw says:

    I wonder if Amazon agreed to collect taxes in every state, that would mean they could open up all the distribution centers they wanted along with all the brick and mortar stores they wanted with no further hassle. If they did this they might be able to grow even larger than they are now due to the “tax issue” being solved.

    Any thoughts on this?

    • Southern says:

      The larger they get though, the more overhead they’ll have — meaning prices would increase accordingly, unless sales increased to match (which would be extremely difficult).

      • gman863 says:

        Based on my above comment, a catalog showroom Amazon store could put a major hurt on Best Buy and possibly even Walmart.

        If Amazon offered a given TV set at $100 less than local stores that stocked it, the competitor (BB or Walmart) would have two choices: Match the price or walk the sale – either of which guts the competitor’s profit margin.

        An Amazon showroom would also bring in people who are nervous about buying a big ticket item without seeing it first. This would be the “x” factor on if the stores pulled their weight in the form of additional market share for Amazon.

    • gman863 says:

      If they decided to go brick & mortar, I suspect it would be a revamp of the catalog showroom concept (e.g. Service Merchandise).

      Little (if any) inventory would be stocked. Customers would be able to see and try TVs, computers, jewelry and other high-ticket items. To buy, they could either order at home (as the do now) or make a virtual purchase at the store, with the item(s) shipped to their home as is now the case.

      I suspect Amazon will test market this in the next year or two. Given the number of empty big box shells available (Circuit City. Borders, Kmart, LNT, etc.) and their possibly large customer count that would boost other stores’ traffic in a half-empty shopping center, they should be able to pick up leases at pennies on the dollar.

  19. Splendid says:

    oh noes! if they tax sales over the internet then this fragile delicate new phenomena might not take hold and we will be plunged into the dark olde times where you could buy things.

  20. santicity says:

    Honest question, is the tax charged on where the item is shipped, or the billing address? If I purchase an item and my billing address is California, but I ship it to New York, which tax rate is used?

    • oloranya says:

      In my experience with other retailers who charge sales tax to online purchases, it’s been the shipping address. I live in NH (no sales tax) and bought an item online in college with a credit card my parents received the bill for in MA (sales tax), and shipped it to me in NH, there was no sales tax charged.

  21. lovemypets00 - You'll need to forgive me, my social filter has cracked. says:

    What annoys me about expecting the consumer to remit sales tax to their state, when it’s not charged on the orders is this: I don’t buy much online, and so far this year I’ve spent $44.41 on Amazon.com on items that would be taxed here in PA. So, I’m expected to write a check for $2.66, put a stamp on an envelope, and mail check to the PA Dept of Revenue? What kind of nonsense is that? The state will spend 5x as much as the tax is worth just processing the check.

    I could see it if I was spending a $1,000 or more, but really – for less than $3 in tax money? It seems like a lot of bother to me and the state.

  22. JonBoy470 says:

    I’m really not sure why Amazon isn’t telling these states to pound sand…

    • gman863 says:

      Because the law states if a nusiness has a nexus (physical presence) in a state it must collect tax.

      Amazon had a distribution center in TX. About a year ago TX tried to bill Amazon for about $290 million for sales tax the state alleged Amazon owed but never collected.

      Amazon promptly closed their TX dist. center.

      Now, with this agreement to soak TX buyers with sales tax, Amazon is reopening the distribution center and planning to expand it.

      or, put simply, it had something to do with shady back room deals and bribes.

  23. Press1forDialTone says:

    I laugh at this.
    I wrote a web-based e-commerce system as part of my job and it was
    a no-brainer to put in a facility for the software administrator to activate
    and set the proper “sales” tax regardless of the buyer’s location. The “tax”
    was simply regarded as something the government of the location where
    the shopper lived charged. This worked for US states and territories etc and
    even locations outside the US. Sure it was simple and it could be turned off
    and on depending on the location the shopper indicated (they couldn’t free-type
    this) so initially all locations were turned off, but now it won’t be a hassle for the
    folks who use this software as a storefront to just turn it on, collect the “sales
    tax” and see that it gets to the proper authority.
    In the beginning, nearly all e-commerce software has NO facility to handle
    sales tax, thinking it would never happen. Ha.

  24. VashTS says:

    Well, taxes are a shame in the first place. The government spends 1 billion on one plane made for our “safety,” while the MOST expensive high end hospital equipment cost around $750 thousand. So why collect sales tax if the money goes to the wrong places? Most people are against war and unnecessary spending. There we go.

    I remember hearing from other people, other college professors that the IRS was an idea by the wealthy bankers to get the US citizens money to buy property, invest in gold and land, which the bankers themselves would own and benefit from. I hate that Amazon gave into the lawbreakers. Gosh forbid, they get blamed for the sh!tty economy.

  25. Skyhawk says:

    Another disgusting money grab by government.

    Sales taxes are used, presumably, to fund infrastructure and other government services provided to the businesses that operate within a state.

    What services are those states providing for the money they are collecting from the sales of businesses that do not have a physical presence in said state?

    Fuck this and everything about it.

  26. ectreece says:

    I shop Amazon because I live in small town Texas. So I now have to pay taxes, who cares? If i drove to the store handling the item I would be going between 100 mile round trip to 600 mile round trip. I am still ahead. Locally I have Walmart, hardware stores, feed stores, and a coulple of clothing stores and one grocery store. The selection is good for day to day home items and poor for things like books. Three racks at Walmart and one at the grocery. It beats driving 50 miles one way. I try to limit that trip to once a month or less.