Tax on online GPS receiver orders

I say to them keep on fighting there should never be tax online period. this would kill business

Even if Amazon does not collect you still are required to pay. Just hope Amazon and others fight Kali and others from demanding sales records for past years. If Kali gets them they might go after everybody for back taxes and penalties.

California would try to collect tax on what you buy in all the other States if they could figure out how to get buy with it.

If you purchase a used car from a private party in California and you are a legal resident and actually live in another State and you do not have written proof that you took possession of that vehicle outside the California border they will force you to pay them sales tax before they will release the California title.

Cali is broke so that's why they are cracking down, trying to eke out every ounce of revenue in every way possible

Amazon has cut ties with CA based businesses/suppliers to fight tax. More unemployment for CA and businesses moving out of state. Politicians never learn, they just want tax money. Maybe business will move to TX where the effort to tax internet purchases was crushed in favor of jobs.

A Merchant may collect taxes on intrastate sales REGARDLESS of any online law.

If you live in the state where the purchase will be made, the Merchant can and may collect sales tax on said purchase.

I buy from a online merchant in Texas and get charged all the time, I pay because the Merchant always stand behind the product and have a A+++ rating by/buy me and many others.

If you send a product back, you will often bite the return to sender charge. so buy only from QUALITY MERCHANTS that stand behind the purchase and any return charge if needed.

In almost all cases, the rich man pays very little to no tax at all. Most of the money from taxes comes from the working man trying to make a living in these hard times. If they taxed the rich equal to that of the poor working class, they would have all the money they need.
That's all I have to say.

The old rule was if you are making an online purchase from a merchant who maintains a brick and mortar store in your state then they must apply the taxes just as if you were at the store i.e. Sears.com, Walmart.com, etc..

Gov Moon Bean went a step further; Amazon has internet resellers that reside in many states including CA (I was one in my web page in FL) when the Gov demanded that any Amazon sales originated from a CA customer get charged taxes regardless if it was done at the Amazon.com site or a reseller website Amazon responded by immediately severing its ties to all the resellers websites from CA

Now the push and shoves comes when a CA resident makes a purchase from Amazon.com site they are not obligated by law to collect taxes since they don’t have even a remote presence there.

So what’s next is CA gov going to make FEDEX and UPS leave Amazon packages at the border?

spends money like a drunk sailor on shore leave for the first time in 12 months - there is no shortage of revenue, just complete uncontrolled spending.

I'm with you on this one. I'm getting sick and tired of the 40%+ in this state collecting from the state and never working. It's a shame, all the taxes and environmental hoops companies have to go through is running them out of the state. That's why Intel didn't expand their plant in Folsom, and took it out of state.

Thought for the day: When you elect IDIOTS to represent you . . . they will represent you like . . . - you got it - IDIOTS.

Illinois is trying to tax Amazon's sales also. I read that Amazon said that they would just block shipments to that state. Illinois purchasers would then need to get it shipped from wherever. See the point? Illinois residents would clamor to get the tax repealed - if it even ever got instituted.

Politicians always try to tax their constituencies. In the long run, the populace always wins.

I have to "make do" on my income why shouldn't the government have to do the same in stead of raising taxes to giveaway more?

Your money goes to funding the middle east conflicts. Billions and billions of it. Now Libya, and Syria have been added.

It will never be 'winnable', just like Vietnam was not winnable. But, that's where your cash is going.

I think it was Amazon that stopped doing business in CT recently because they are now required to collect sales tax.

Exactly. The politicians never fail to try to kill the goose that lays the golden egg. Instead of using our taxes wisely, they squander our resources then group think their way to more taxation sometimes without representation. But then they never change/improve their fiscal behavior.

Fair taxation is a noble ideal, possibly unattainable. Currently about half of us are paying taxes while the remainder (poor?)don't, but everyone consumes goods and services.
On balance, we need to protect the truly poor - not the scamsters. At the same time we should recognize that business which provide jobs and pay taxes, are not created by the poor but by those with the capital and risk taking inclination of the entrepreneur.

Yea, the wealthy don't seem to be so enthused about paying taxes either... Golly gee, Wally!

Illinois' Main Street Fairness Act became effective July 1. The purpose was to save jobs in the state because Amazon had an unfair advantage. The so-called “Amazon tax,” which won’t affect the online giant because it has terminated its relationship with all in-state affiliates, went into effect when Gov. Pat Quinn signed it into law in March. This law was sought by Wal-Mart.
.. Late last month a Rockford affiliate moved their offices to Beloit WI, just a few miles away. Oops. There went 20 Illinois jobs.

http://www.azcentral.com/arizonarepublic/business/articles/2...

Yes, let's continue to offer tax breaks for the rich so GE doesn't have to pay any taxes and hedge fund managers can pay only 15% by calling their income capital gains instead of ordinary income taxes like the rest of us poor fools pay.

Oh and lets throw a few billion in tax breaks to BP for them to take home to Britain.

It's not about taxing job creators or we'd have jobs created under Bush, which didn't happen. Those are just Republican talking points to maintain the tax breaks for their rich constituents.

Spending? Sure, let's continue to spend billions each month on the military-industrial complex with no real purpose to it. We got bin Laden and still have to spend $1.5B/month in Afghanistan that will lead to no other results while looking for the last 12 al Queda members?

It's all about who can "lobby" with the biggest bribes to congress.

The fundamental problem is that we're spending much more than we're earning - both in CA & nationwide. There's no way around it but to pay the debt down & reduce spending & benefits. What's being argued about is how to do that, how long to do the job, & who pays.

This will remain a looming issue for a nation who is no longer number 1, can't hold to a sustainable budget, has politicians who are totally concerned about getting re-elected & has a populace who can't add a column of numbers & believes they are entitled to everything someone else has.

Not a good harbinger for the US.

Fred

Collecting Sales Tax
Some Sites Have To, Some Don't

If an online retailer has a physical presence in a particular state, such as a store, business office, or warehouse, it must collect sales tax from customers in that state. If a business does not have a physical presence in a state, it is not required to collect sales tax for sales into that state. This rule is derived from a 1992 Supreme Court decision which held that mail-order merchants did not need to collect sales taxes for sales into states where they did not have a physical presence.

Consumers Responsibility to Pay Sales or Use Taxes.

Consumers who live in a state that collects sales tax are technically required to pay the tax to the state even when an Internet retailer doesn't collect it. When consumers are required to pay tax directly to the state, it is referred to as "use" tax rather than sales tax.

The only difference between sales and use tax is which person -- the seller or the buyer -- pays the state. Theoretically, use taxes are just a backup plan to make sure that the state collects revenue on every taxable item that is purchased within its borders. But because collecting use tax on smaller purchases is so much trouble, states have traditionally attempted to collect a use tax only on big-ticket items that require licenses, such as cars and boats.

That, however, may be changing. Many states have reevaluated their attitude towards collecting use taxes. For example, New York state has added a line to income tax returns requiring all residents to calculate how much they should pay on Internet, mail order, or out-of-state purchases. California has begun a campaign to educate taxpayers on what's owed, as well. Watch for more states to step up use tax collections.

http://www.nolo.com/legal-encyclopedia/sales-tax-internet-29...

http://www.maine.gov/revenue/salesuse/usetax.pdf

I think that California is being unfair. Amazon complied with all of the specifications required for them not collect tax on their items. Now CA is saying pay me anyways. I will be sure to sign the petition to get this into the hands of the people of CA to vote. They need about 1/2 million signatures to get it on the ballot. Good luck Amazon.com.

I disagree. Not charging sales tax equally and fairly puts your local businesses at a disadvantage. Those local businesses contribute to your local property tax base and provide local jobs.

I dislike taxes as much as anyone, but they should be levied equally and fairly.

Local business have the customer service advantage of being there for returns, answering questions, and warranty work. It was always a trade off ordering from a catalog even in the pre-internet days. Usually, the compensation for lack of these benefits was a larger selection, reduced cost, and little or no sales tax.

With all of the states having budget problems they will look for any way to obtain more tax revenues. If it means taxing internet sales then they "will" find a way to get their hands on it.

Even Amazon and the other big online retailers will not be able to hold out. What are they going to do, quit doing business with all of the U.S states because they want to collect sales tax. Not going to happen.

It's just a matter of time. For now, enjoy it and buy it while you can.

Before you start giving out too much free legal advice at the detriment of the reader, you might want to research the 1969 U.S. Supreme Court ruling "National Bellas Hess, Inc. v. Department of Revenue of Ill." They ruled that such interstate taxes created an unconstitutional burden on interstate commerce based on the Fourteenth Amendment's due process clause. In addition the Supreme Court found it conflicted with the commerce clause because, “The very purpose of the Commerce Clause was to ensure a national economy free from such unjustifiable local entanglements. Under the Constitution, this is a domain where Congress alone has the power of regulation and control.” I don't believe that saying that a citizen has the burden to pay such taxes voids the Supreme Court ruling.

Tell your story to the NYS Dept of Taxation and Finance and see how far you get. The law in NYS requires you to pay sales tax on out of state purchases, it is your responsibility to report those purchases on you annual income tax return.

I totally disagree with the law but that is what it is. If one chooses to comply or not it is not my business nor do I care either way.

California has 10 times more population than Connecticut. It may be not that big deal for Amazon to give up on CT. But, they will never give up CA because of the amount the business they do there. Think about this, why Amazon purposely places so many warehouses just few miles outside CA border?

Amazon has terminated all partners (sites that link to Amazon, based in the Peoples Republic of California) so they don't have to collect and submit the sales tax to the state.

Many Illinois taxpayers are unaware that a Use Tax exists in Illinois. Do you know about Use Tax?
In 1955, the General Assembly passed the Use Tax Act. Use Tax is a sales tax that you, as the purchaser, owe on items that you buy for use in Illinois. If the seller does not collect at least 6.25 percent sales tax, you must pay the difference to the Illinois Department of Revenue. The most common purchases on which the seller does not collect Illinois Use Tax are those made via the internet, from a mail order catalog, or made when traveling outside Illinois. You must keep your receipts when you make these types of purchases.

In 2010, the General Assembly passed a law making it easier for individuals to pay their Use Tax by putting a line on Form IL-1040. It also created an Illinois Use Tax Amnesty which means individuals can pay Use Tax owed for prior years without penalty and interest on Form ST-44. Click here for more Use Tax information.

•The Department of Revenue was required by law (Public Act 96-1388) to put a Use Tax line on Form IL-1040.
•The legislators wanted to make citizens more aware of their Use Tax obligation by putting the Use Tax line on the return. There is an explanation of Use Tax and individual's responsibility in the IL-1040 instructions.
•Other states have put a Use Tax line on their income tax returns.
•Putting a Use Tax line on the return will assist you in complying with the law and reporting your Use Tax obligation.

I'm being heavily reminded of that Beatles song, "Taxman" from the "Revolver" album...

The Lads saw it coming.

On the subject of taxes, equity and "job creators" (for those who speak Republican) here is some empirical data that shows what is happening in the US:

► Adjusted Gross Income Shares for 1980 and 2009 (Percent of total AGI earned by each group):

Income Group—1980 / 2009
Top 1% -- 8.46% / 20.0%
Top 5% -- 21.01% / 34.73%
Top 10% -- 32.13% / 45.77%
Bottom 50% -- 17.68% / 12.75%

► Average Tax Rate for 1980 and 2009 (Percent of AGI paid in income taxes)

Income Group--1980 / 2009
Top 1% -- 34.47% / 23.27%
Top 5% -- 26.85% / 20.70%
Top 10% -- 23.49% / 18.71%
Bottom 50% -- 6.10% / 2.59%

► Total Income Tax Shares for 1980 and 2009 (Percent of federal income tax paid by each group)

Income Group--1980 / 2009
Top 1% -- 19.05% / 38.02%
Top 5% -- 36.84% / 58.72%
Top 10% -- 49.28% / 69.94%
Bottom 50% -- 7.05% / 2.70%

http://www.taxfoundation.org/research/show/250.html#table5

► In 1952 corporation taxes accounted for 32.1% of US federal receipts. In 2009 they accounted for 6.6%.

On the flip side, in 1952 employment taxes* accounted for 9.2% of federal receipts, and in 2009 they accounted for 42.3%.

*Employment taxes comprise old-age and survivors insurance, disability insurance, hospital insurance, railroad retirement, railroad Social Security equivalent account, employment insurance, employee share of Federal employees retirement, and certain non-Federal employees retirement.

http://www.jct.gov/publications.html?func=startdown&id=3719

The federal government currently collects 14.5% of GDP as tax. The number always is depressed when the economy is depressed. However, it is much lower now that at its lowest points during previous recessions:

Reagan - 1984 - 17.3%
Bush I - 1992 - 17.5%
Bush II - 2004 - 16.1%
Obama - 2011 - 14.5%

Source: http://www.whitehouse.gov/sites/default/files/omb/budget/fy2...

The difference in tax collection now and 20 years ago is 3% of GDP, about $400 billion of annual revenue, and a third to a half of the current budget deficit.

The budget deficit could likely be brought to sustainable levels simply by ending the various, useless middle east wars, and rewinding the tax laws back to where they were in the early nineties.

Lifted from an interesting discussion here:

http://www.guardian.co.uk/business/2011/jul/24/us-debt-crisi...

and another interesting article here:

http://www.huffingtonpost.com/jeffrey-sachs/budgetary-deceit...

No taxes

No, it's time for a flat tax rate system. Less outsourcing, and back to a sustainable, nation-driven economy for North America.

Screw the Chinese. We need our money here.

Globalization did this, and it's time to claw it all back.

That's just not true at all. If you live in California you are required to pay sales tax for what you buy, it's just that most people don't.

What California is trying to do is get around the law, which essentially says if you are selling to a Californian and you are not in California, you are not required to establish a tax paying relationship with a state you are not in. This makes sense, what merchant can maintain the tax payment records for 50 states plus each county and city in each state? They are not required to.

This is what California wants Amazon to do. Remit the tax for sales to California residents. And Amazon does indeed have operations in California. So they are likely supposed to be paying the tax. But they don't want to.

I am not pro tax, but fair is fair. If you are in California and you sell to California you have to remit the required sales tax. If you are not you don't.

Quite a disadvantage to California based businesses the way it is.

I agree, no taxes, and accordingly - no police, no firemen, no roads, no transit, no hospitals, no armed forces, no social security, no medicare, no garbage collection, no building standards, no food regulation........

I believe it's called Somalia.

I'll ask the same question. Where are the proud "Made in America", and "Made in Canada" stickers we used to see?

People are cutting their own throats by buying Chinese crap. We have no more decent paying jobs. We are only consumers now.

I have paid more willingly, to buy 'Made in Canada/ US' goods. I hope you will too.

The 1969 ruling was superseded by Quill vs N Dakoda, which the Court ruled in 1992. The short version is if a business does not have a "nexus" in state A, then it may not be compelled by state A to collect sales tax on good sold in that state.

Please note that this does not mean that a consumer in state A is not liable for paying the *use* tax. Every state with a sales tax has an equivalent use tax, which generally must be paid in lieu of a sales tax when sales tax has not been paid. Although enforcement has been lax, many states have/are adding a use tax line item on state tax return forms.

We all saw this coming in the '70s. I remember buying a microwave oven for $500 in 1972 when my daughter was a baby. A few years later a VCR cost $600. In Jr. High she showed a keen interest in photography & drama. The VHS camcorder cost more than a thousand. We working Americans wanted all those things. Corporations discovered a way to make all of those things affordable for everyone. We said Goodie Goodie. Now we can't go back to the manufacturing base we had then.
..How much would a "Made in USA" Garming cost? GARMIN

North America has the same technology available to make the same goods.

I refuse to buy into the BS all of the corporations spout. If it costs me $10 more, I don't care. It's OUR people that are being employed!!

The cost of labor is not the main or even a significant reason manufacturing moved offshore.

http://msl1.mit.edu/classes/esd123/vyas.pdf

In Ohio, if you buy something online (or anywhere) without paying the sales tax, you are required to report on your annual tax return and pay "use" tax on the item.
And I"m sure that everyone does just that.

Don't get me wrong, saving tax on internet purchases is great for the consumer. And yes, when you file your tax return you are asked if you made any internet purchases in the last year. I'm not sure who would raise their hand on this one but Amazon, however, may find itself with nowhere to send its merchandise to if state after state continues to require tax to be collected on these sales. If they are not careful with all their chest thumping, they may wind up shooting themselves in the foot.

That study was funded by the US Government. The link does state that total manufacturing costs equal roughly 50 per cent of MSRP. I consider that to be very significant.
I'm not sure why you referred that link.

This country can not even manufacture the wind turbines that are popping up. Those units come from China. We truck them to the site & install the blades. A company tried to make them in Newton Iowa and failed.
Your Garmin would certainly cost more than an extra ten.

Just because Amazon has severed business ties with resellers in California and some others States doesn’t means they can not sell directly to the customers located in those States.

By no longer having a physical presence there Amazon is no longer required to collect the taxes on behalf of the States, it is now a matter between the State and its citizen’s honesty.

Customers from anywhere in the 50 States can go and purchase goods directly from Amazon.com and there is nothing under current Federal law that States can do to prevent the transaction, nor can they prevent any US carrier from delivering such goods to the customers in the States involved.

I sure hope Amazon wins its cases, the state of CA is taxing the hell out of us and since the governor did not get his way, he is looking for any loophole he can find to tax and more tax.. About time someone stands up to him and say NO MORE TAXES

The labor cost was 6.5% of MSRP The cost of materials was 42.5% Amortization and Depreciation, Engineering
R&D, Pension and Health Care,Advertising, and
Overhead 21.5% Dealer Markup 17.5% Transportation/Warranty 4.5% Price Discounts 5%

Therefor labor is insignificant in the overall picture.

Intel seems to do quite well, as well as many others. North America needs to get back to a manufacturing economy, and not a consumer economy. That's been the downfall.