Thursday, September 6, 2012

CALIFORNIA DREAMING...er, NIGHTMARE

  Most of us do a lot of shopping at Amazon.com.  Not only do they have a huge variety of product selections, they have neat low-cost options like Amazon Prime which, for a small annual fee, provides for free two-day shipping, internet streaming video (a lot of which is free), and Kindle e-book access for everyone in a household.

  Another advantage of Amazon has been the fact that purchases from them were not subject to your state's sales tax.  The first chink in that advantage is about to happen.

  As of September 15th, Amazon sales in California will be subject to California sales tax.  Bummer!  Even though I don't live in California I see this as the first of many states in which Amazon will start collecting local state tax on their sales.

  I have read reports that Amazon is actually supporting these sales tax actions because they are building distribution centers in more and more states to be able to actually provide one-day delivery for their Amazon Prime customers.

  I would actually prefer two-day delivery to paying sales tax on my purchases.

  Historically, internet merchants (like me, for example) only had to collect state sales taxes from customers from states in which they actually had a physical presence.  Unfortunately, as internet merchandising has become so large, states are beginning to lobby for that to change.

  On the near-term (as best as I can determine), California is the only state, so far, in which Amazon is collecting state sales taxes but others will undoubtedly follow.

  So...if you live in California and have been anticipating some Amazon purchases, now is the time to do them, at least before September 15th.

  And if you use one of the Amazon links on this page I will receive a small consideration.  8-)

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