elgato
Joined: 24 Feb 2005
Posts: 17240
Location: Texas
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| Posted: Mon Jul 25, 2011 9:40 am Post subject: Amazon Will Eventually Pay Online Sales Tax, Says Analyst |
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It has been an interesting few weeks for retailers, both online and offline, in the state of California due to the new law requiring online retailers to pay taxes on their affiliate advertising. In response, ecommerce sites such as Amazon and Overstock have shut down their affiliate programs in the state and are trying to get California residents to overturn the law.
As with any situation, there are two sides to this story. Online retailers, like Amazon, believe they are protected under a Supreme Court ruling in 1992 that said retailers shouldn’t have to pay sales taxes in states in which they don’t have a physical presence. Since Amazon doesn’t have a physical store in California, it therefore believes that the law is out of order.
California, on the other hand, argues that since these retailers have affiliates in the state that sell products for the online retailers, they should be required to pay a sales tax. Although California obviously has a financial motivation in its action, it is also aware that many brick and mortar businesses feel that online retailers have an unfair advantage over them. Brick and mortars are also feeling victimized by the growing trend in which consumers visit brick and mortar stores to test products but then turn around to make their purchases online.
more.. link to news article |
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