Another 25 sent, been meaning to do so for some time now, one thing I would like in exchange is a reminder email next year that I'm due to donate what I can again, I feel like a lot of us get so busy that we just forget, and there would be no better time than Independence Day every year to send out a little reminder that this site isn't free to run.
Notice re Amazon Commission Cut-off for Californians
- Thread starter Forum Boss
- Start date
Paul
Right now in California if you purchase something online you are supposed to claim it and pay taxes on it correct?
Isn't that on our current tax form?
Didn't all the mom and pop sporting goods shops complain they couldn't compete against the out of state non taxed web based competition and folded up there shops?
On face value it appears they are collecting the tax you are supposed to be paying in the first place but you haven't been following your own laws and have avoided it.
Any of this sound right?
All about the rules remember?
Lynn
Right now in California if you purchase something online you are supposed to claim it and pay taxes on it correct?
Isn't that on our current tax form?
Didn't all the mom and pop sporting goods shops complain they couldn't compete against the out of state non taxed web based competition and folded up there shops?
On face value it appears they are collecting the tax you are supposed to be paying in the first place but you haven't been following your own laws and have avoided it.
Any of this sound right?
All about the rules remember?
Lynn
Forum Boss
Administrator
lynn said:
The contract termination affects California residents who, formerly, received small commissions if their web referrals generated sales for Amazon. The money this site received in commissions was reported income on which we pay state and federal income taxes. Amazon and other affiliate networks file a 1099 that also reports the affilates' earnings directly to the IRS.
Now, if by "you" in the post above Lynn means other Californians who are not paying sales tax on out of state purchases. that's a different matter. I think Sacramento realizes that isn't going to happen any time soon. Here's more background from the L.A.Times:
"California's new law was drafted to circumvent a 1992 U.S. Supreme Court ruling that sellers can't be forced to collect sales taxes unless they have a physical presence in the state.
The new statute would establish that presence in two ways: when sellers pay commissions to other Internet sites in California, known as affiliates, that refer buyers; and when sellers have a related company operating in the state."
Because Amazon is nuking all the affiliate contracts, I think California is unlikely to collect the tax revenues it has targeted. The only net result will be elimination of Amazon's shared revenue to California affiliates. As a result, CA affiliates will have less income to declare, and accordingly the state will collect less taxes.
Well put, its just another case of narrow minded people in office. They see dollar signs and want to get their hands on them, without thinking how it may back-fire. This is just another example of what the law actually does, not the intent of the law. What this law does is make it harder for a company operating out of the USA to do what it does, which will eventually force that business out of the country or result in lower profits ergo less tax dollars coming in. Also lower profits (more overhead) reduces a companies "stock" value which puts my generation further from retirement as if the devaluation of the dollar isn't killing my hopes enough.
WVRedneck
According to Pauls answer he is already paying the taxes they are after so the law in essence goes after nobody for any new money.
That is unless he is leaving something out.
Several years ago the mom and pop sporting goods stores cried foul that the big web based out of state e-tailers were stealing there business by not being on a level playing field.The out of state e-tailers could sell an item for $500 while the in state retailers were charging $500 plus the 8.25% sales tax or an additional $41 and change.
This drove most of the small shops out of business which meant no tax is collected no property tax is paid no business license and a million other little things are all gone.
It helped the big e-tailers to take over and it cost them nothing and they in turn contribute nothing to the state like the mom and pop retailers did.
They would give websites like this one a small fee to help them draw in more customers but again contributed nothing to the state that drove away the competition for them in the first place all the while lining there pockets.
Lynn
According to Pauls answer he is already paying the taxes they are after so the law in essence goes after nobody for any new money.
That is unless he is leaving something out.
Several years ago the mom and pop sporting goods stores cried foul that the big web based out of state e-tailers were stealing there business by not being on a level playing field.The out of state e-tailers could sell an item for $500 while the in state retailers were charging $500 plus the 8.25% sales tax or an additional $41 and change.
This drove most of the small shops out of business which meant no tax is collected no property tax is paid no business license and a million other little things are all gone.
It helped the big e-tailers to take over and it cost them nothing and they in turn contribute nothing to the state like the mom and pop retailers did.
They would give websites like this one a small fee to help them draw in more customers but again contributed nothing to the state that drove away the competition for them in the first place all the while lining there pockets.
Lynn
Just to make sure I'm understanding your correctly you are basically saying that the 8.25% sales tax is what killed the small shops. Not competition because competition is what drives a free market. Lastly at 8.25% California has one of the highest state sales taxes in the country yet has one of the largest deficits. My point is this, I have nothing against paying taxes when and where needed but what this law does is further complicate an already insane tax code in this country and discourages business. If a business needs 20 accountants to keep up with the paperwork we as the consumer pay the price. Don't forget that amazon employees and partners DO already pay taxes, the federal and state income tax. I'm not saying I'm against all taxation but I am against further complications in the current tax system. Instead of adding to the chaos that allows huge companies to pay nothing and, as you said, kills the little guys I simply don't see why the process can't be stream lined.
What I am saying is the 8.25% on top of a morgage,Property taxes,License fees,Electricity,Maintanence and a hundred other things needed to open the doors each day in California killed them when fighting a company who is based in a state without those costs.
If it wasn't a big deal they wouldn't have done away with all there afilliates over the same small amount.
They want you to buy directly from Amazon and to get rid of the little guy who wasn't even making 8.25% now that they are forced to collect the tax.This is not over 8.25% it is actually a smaller amount than that.
If Amazon sells you something for $1000 the state gets $82.50
If a mom and pop sold you something for $1000 the state got $82.50 or more.
Right now if one of there affiliates links you to Amazon and you buy something for $1000 the state gets nothing and the affiliate gets 2% or less.You are supposed to pay 8.25% on that purchase when you fill out your taxes but most consumers have memory trouble and forget to include it in there taxes.
They are all corrupt and I realise that just saying this isn't over 8.25% it is all over less than 2%.
Lynn
If it wasn't a big deal they wouldn't have done away with all there afilliates over the same small amount.
They want you to buy directly from Amazon and to get rid of the little guy who wasn't even making 8.25% now that they are forced to collect the tax.This is not over 8.25% it is actually a smaller amount than that.
If Amazon sells you something for $1000 the state gets $82.50
If a mom and pop sold you something for $1000 the state got $82.50 or more.
Right now if one of there affiliates links you to Amazon and you buy something for $1000 the state gets nothing and the affiliate gets 2% or less.You are supposed to pay 8.25% on that purchase when you fill out your taxes but most consumers have memory trouble and forget to include it in there taxes.
They are all corrupt and I realise that just saying this isn't over 8.25% it is all over less than 2%.
Lynn
Forum Boss
Administrator
Lynn,
California didn't pass the law to be able to tax the commissions received by affliates. They already do that. The new law was passed in an attempt to get AMAZON to collect sales tax on its online sales to California consumers. These are two completely different things and you shouldn't confuse the two.
Affiliate income (paid by Amazon to CA companies) = Already taxed by California (and Fed) and reported by 1099
California Sales tax on Amazon sales made to California residents = NOT reported, collected, or paid to California ... yet.
California hopes the new bill will force Amazon to collect sales taxes based on "nexus". However, CA needed the affiliates to establish "nexus". That is why Amazon (and Cabelas, and Gander Mtn.) all terminated ALL their California affiliate programs. Affiliates are NOT at issue because of their commission income. Rather California wants to use the existence of affiliates to establish jurisdiction and taxing power over Amazon.
California didn't pass the law to be able to tax the commissions received by affliates. They already do that. The new law was passed in an attempt to get AMAZON to collect sales tax on its online sales to California consumers. These are two completely different things and you shouldn't confuse the two.
Affiliate income (paid by Amazon to CA companies) = Already taxed by California (and Fed) and reported by 1099
California Sales tax on Amazon sales made to California residents = NOT reported, collected, or paid to California ... yet.
California hopes the new bill will force Amazon to collect sales taxes based on "nexus". However, CA needed the affiliates to establish "nexus". That is why Amazon (and Cabelas, and Gander Mtn.) all terminated ALL their California affiliate programs. Affiliates are NOT at issue because of their commission income. Rather California wants to use the existence of affiliates to establish jurisdiction and taxing power over Amazon.
Forum Boss
Administrator
Beau said:
Actually we are looking at the costs of this or Delaware LLC. The Amazon relationship was worth a couple hundred a month, but it could grow. With the affiliate termination we forfeit that money unless we can find a way to direct it to an out of state payee.
Paul
I am well aware of why they are asking Amazon to collect the money.
The good residents of Xalifornia are not paying the sales tax and they are not reporting it on there tax forms.
Dishonesty in California and with Californian's is no suprise to me.You have to remember that I am one of the only ones living here who actually follows the rules.
Now that they are forced to pay in the 7.25% not 8.25% they don't need the affiliates getting any commission.
On larger purchases you can still skirt the issue by having someone else by the stuff and pick it up on your next hunting/match trip in there location.Just make sure you use a credit card with a billing address that is out of state.
I suspect Nevada Post Office Boxes will now become a highly regarded asset.
Lynn
I am well aware of why they are asking Amazon to collect the money.
The good residents of Xalifornia are not paying the sales tax and they are not reporting it on there tax forms.
Dishonesty in California and with Californian's is no suprise to me.You have to remember that I am one of the only ones living here who actually follows the rules.
Now that they are forced to pay in the 7.25% not 8.25% they don't need the affiliates getting any commission.
On larger purchases you can still skirt the issue by having someone else by the stuff and pick it up on your next hunting/match trip in there location.Just make sure you use a credit card with a billing address that is out of state.
I suspect Nevada Post Office Boxes will now become a highly regarded asset.
Lynn
nhm16 said:
I thought it was little humorous that the article stated Walmart was at a disadvantage.... really?
nhm16 - that's a great article that follows up on the recent issue, providing some perspective to the situation that I didn't know about, or read about.
I recommend reading this after reading the article Paul posted - http://www.geekwire.com/2011/guide-amazon-losing-tax-battle
interesting stuff...
I live and own a business in California. The State of California is in serious financial distress. It spends more than it takes in, and it refuses to curtail its spending. I am expecting the State of California to collapse and seek a federal bailout. I hope the rest of the country will not allow the fed to bailout this state. Otherwise there are no consequences for irresponsible management. In my opinion, this is another long armed attempt by the California government to tax a business that it has no busness taxing. Every move made by this irresponsible government results in more businesses leaving California. Last year, Governor Rick Perry persuaded about 150 businesses to pull up their stakes in California and relocate to the State of Texas. The inmates are running this insane asylum, and it is only a matter of time. Those of you who do not live here have no idea of how insane this state is being run.
gme
Site $$ Sponsor
Received notice today that a "Statewide Compliance and Outreach Specialist" will be paying a visit to the shop, this nice individual will be coming over to "help me learn more about the sales tax laws and registrations that apply to my business" of course they will also make sure all "my account information is in order" and then "advise me if I need to hold additional BOE issued permits or licenses" Cant wait!
Gary Eliseo
Gary Eliseo
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