Power Sellers Unite

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

Amaazon.com, Inc told California tax officials this week that it will cut ties with thousands of California affiliates if the state passes pending legislation requiring the online retailer to collect sales tax from California customers.

Amazon, contending that four bills pending in the California Legislature appear to be unconstitutional or would “construct Trojan horses” leading to unconstitutional regulation, said passage of any of the bills into law would compel the world’s largest online retailer to end its advertising relationships with more than 10,000 California-based participants in Amazon’s affiliate program. Amazon, No. 1 in the Internet Retailer Top 500 Guide, compensates program participants when they refer consumers who make purchases on Amazon.com.

State tax officials estimate that Amazon’s termination of its California affiliate program would slash by 50% the revenue the state expects to raise under the pending legislation, according to a statement by state senator George Runner, who is a member of the state’s Board of Equalization, the state agency that oversees sales tax collection.

more.. link to news article

things4u · Joined: 21 Jan 2007 Posts: 1331

sounds like Amazon is doing what they feel is in the best intrest to their seller base and for their bottom line, it shows that people what ever sector in business are getting tired of the goverment trying to run the show and taxing everything to extinction.
it's kind of like the inmates are taking over the asylum

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

Correct things4u. It's THEIR business and if they chose to not pay a tax for operating their business, so be it! Eventually, they might move to another tax-free country. :shock:

Related article to OP:

"Amazon’s problem, Wal-Mart’s opportunity"

As the battle continues over online sales taxes, Wal-Mart and Sears hope to snatch up California-based affiliate marketers tied to its web-only rivals. Amazon and Overstock say they will cut ties with those affiliates should the state enact a sales tax for web purchases.

The latest move in the battle over online sales taxes is pitting mega-retail chain Wal-Mart Stores Inc. and other multichannel retailers against web-only rivals Amazon.com and Overstock.com for the loyalty, and revenue-generating potential, of California-based affiliates.

Wal-Mart, the world’s largest retailer, has issued a public invitation to Amazon and Overstock affiliates to work with the Walmart.com e-commerce site. Sears Holdings Corp. issued its own letter to Amazon affiliates today. Bookseller Barnes & Noble extended a similar invitation to Amazon affiliates last month. Online retailers pay affiliates, typically operators of informational web sites, a cut of the sales that result from consumers clicking on a retailer’s ads on their sites.

Amazon and other online-only retailers are fighting efforts by California and other states to require e-retailers to collect sales tax on products sold to consumers in those states. California lawmakers argue that Amazon has a physical presence—or nexus in legal jargon—in the state because thousands of Amazon affiliates operate there. The maneuver prompted Amazon this week to send a letter to California tax officials warning them that if the pending legislation becomes law, it would terminate its relationships with its more than 10,000 California-based affiliates. Amazon already has cut ties with affiliates in North Carolina, Rhode Island and Colorado for the same reasons.

more.. link to news article

things4u · Joined: 21 Jan 2007 Posts: 1331

it isn't only Amazon that is saying enough is enough the small sellers are sick and tired of paying a tax on everything, The tax man is saying that he is always on welfare and it isn't not so if he would just stop spending the tax collected for his good times and bloated hand outs,pork projects,ect there wouldn't be a need for all the tax that is paid buy all the hard working people back a long time ago they said that taxes would only be temporary and they would stop collecting well the time has come for them trying to squeeze every cent out of the people and businesses as they have proven that they are totally incompent in their management of the moneys that they are entrusted to manage almost seems that history will have a new boston tea party again about taxation with out proper representation

gourmetfoods · Joined: 13 May 2010 Posts: 28

things4u Well said

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

Update:

"Amazon wants voters to decide on tax collection"

SAN FRANCISCO (AP) -- Amazon.com Inc. wants California voters to decide whether to overturn a new law that forces online retailers to collect sales taxes there, setting the stage for a potentially high-dollar ballot fight next year that would pit business against business.

A petition for a referendum was filed Friday with the state Attorney General's Office so that voters can decide on the requirement, which was included in a state budget signed into law in late June.

The new law forces online retailers to collect California sales taxes by expanding the definition of having a physical presence in the state. The requirement now kicks in if an online retailer has a related company, such as a marketing or product-development arm, or affiliates in the state -- individuals and companies that earn commissions by referring visitors to Amazon from their websites.

Passage of the law, which is projected to help the state collect an additional $200 million annually, adds California to a growing list of states that have turned to such measures in hopes of bringing in more tax revenue. Its legislature passed a similar law in 2009, but then-Gov. Arnold Schwarzenegger vetoed it.

Billions of dollars are at stake as a growing number of states look for ways to generate more revenue without violating a 1992 U.S. Supreme Court ruling that prohibits them from forcing businesses to collect sales taxes unless the business has a physical presence, such as a store, in that state. When consumers order from out-of-state retailers, they're supposed to pay the tax that is due, but they rarely do and it's difficult to enforce.

more.. link to news article

cohibastore.com · Joined: 14 Sep 2006 Posts: 4908

things4u wrote (View Post): › docWrite("quote")it isn't only Amazon that is saying enough is enough....

Due to the deteriorating tax situation in PA we are considering moving. Given, we're not a huge business, but add us to the thousands large and small moving to sate like Tennessee, Texas and Utah, and it adds up.

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

cohibastore.com wrote (View Post): › docWrite("quote")things4u wrote (View Post): › docWrite("quote")it isn't only Amazon that is saying enough is enough....

Due to the deteriorating tax situation in PA we are considering moving. Given, we're not a huge business, but add us to the thousands large and small moving to sate like Tennessee, Texas and Utah, and it adds up.

Texas is hotteer than hell during the summers but the overall economy is pretty good. Tennessee IMHO has a lower cost of living and nicer weather. Don't know much about Utah except it's OK to have multiple wives. :lol: Census shows over 1.7 million people have moved out of the state of NY in the past 10 years due to the overwhelming taxes.

cohibastore.com · Joined: 14 Sep 2006 Posts: 4908

Here are a few things to consider.

Land of the Free? New York and California come out at the bottom of individual freedoms study

http://www.dailymail.co.uk/news/article-2003910/New-York-New-Jersey-California-come-individual-freedoms-study.html

The most liberal states we have, have the least freedoms?!!!!!

Full report here - http://mercatus.org/freedom-50-states-2011

and

The Ten States with the Highest Tax Burdens

10. Pennsylvania - Taxes paid by residents as pct. of income: 10.1%

9. Maine - Taxes paid by residents as pct. of income: 10.1%

8. Vermont - Taxes paid by residents as pct. of income: 10.2%

7. Minnesota - Taxes paid by residents as pct. of income: 10.3%

6. California - Taxes paid by residents as pct. of income: 10.6%

5. Rhode Island - Taxes paid by residents as pct. of income: 10.7%

4. Wisconsin - Taxes paid by residents as pct. of income: 11%

3. Connecticut - Taxes paid by residents as pct. of income: 12%

2. New York - Taxes paid by residents as pct. of income: 12.1%

1. New Jersey - Taxes paid by residents as pct. of income: 12.2%

And

The Ten States with the Lowest Tax Burdens

10. New Mexico - Taxes paid by residents as pct. of income: 8.4%

9. Louisiana - Taxes paid by residents as pct. of income: 8.2%

8. South Carolina - Taxes paid by residents as pct. of income: 8.1%

7. New Hampshire - Taxes paid by residents as pct. of income: 8%

6. Texas - Taxes paid by residents as pct. of income: 7.9%

5. Wyoming - Taxes paid by residents as pct. of income: 7.8%

4. Tennessee - Taxes paid by residents as pct. of income: 7.6%

3. South Dakota - Taxes paid by residents as pct. of income: 7.6%

2. Nevada - Taxes paid by residents as pct. of income: 7.5%

1. Alaska - Taxes paid by residents as pct. of income: 6.3%

Both set of number form:

http://finance.yahoo.com/taxes/article/113173/states-pay-most-least-taxes-247wallst

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

Update:

"Amazon Offers To Hire 7,000 If California Waits On Sales Tax"

Amazon.com has promised to hire 7,000 more people in California if the state puts a recently enacted online sales tax on hold for two years, Reuters reports. Starting July 1, the state began requiring out-of-state retailers to collect sales tax on online orders.

Amazon said that if the state agrees to hold off enforcement of the measure until 2014, it would also drop its push for a ballot measure to repeal the tax. The added jobs would mostly come through new distribution centers.

The news wire said details of Amazon’s offered emerged after a meeting Thursday between the company’s representatives, members of the California Retailers Association and a group of state Senate Republicans. The retailing group is opposed to the state cutting a deal with Amazon. Democratic lawmakers are likely to reject the deal, the story noted, given the state’s need to boost revenue.

California’s jobless rate stood at 12% in July.

http://www.forbes.com/sites/ericsavitz/2011/09/02/amazon-offers-to-hire-7000-if-california-waits-on-sales-tax/?partner=yahootix

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

Update:

"Amazon seeks a tax reprieve"

California state legislators and Amazon.com have forged a tentative agreement that would exempt Amazon from collecting California sales tax for a year. In return, Amazon would drop its push for a California referendum to overturn the state’s new sales tax law and lobby for a federal law that could lead to broader collection of sales tax by online retailers.

California state legislators and Amazon.com Inc. have forged a tentative agreement that would exempt Amazon and possibly other online retailers from collecting sales tax from California residents for a year, state officials say.

Amazon has agreed in return to drop its push to put a referendum on a state ballot next June that would let voters decide whether to overturn the existing sales tax law that went into effect in July. The retailer has also agreed to step up lobbying efforts for a federal law that to create a nationwide system of sales tax collection by Internet and catalog retailers, state officials say. If a federal law isn’t enacted by next year, Amazon would start collecting the California sales tax.

Amazon, No. 1 in the Internet Retailer Top 500 Guide, declines to comment.

http://www.internetretailer.com/2011/09/08/amazon-seeks-tax-reprieve