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The End Of Tax-Free Shopping On Amazon


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To be clear, the end user ALWAYS owes the tax. However, the state can only require the retailer to collect the tax on the state's behalf when the retailer has a physical presence in the state. Amazon is attempting to get an undeserved "discount" by refusing to collect the sales tax owed by its buyers, a tactic unavailable to those retailers who actually pony up and build the state of Texas' economy by locating here and employing Texans. Not only do I see no need to praise Amazon for its chickenshit tactics that cost Texans tax revenue, I believe they should be shunned for the disdain they show for our state and our laws.

It should be noted that those internet fanboys who always brag that ecommerce will render brick and mortar retailers obsolete are only encouraging the destruction of our local economy. Many of these internet "hipsters" rush to "like" Facebook pages that lambaste Walmart, even though Walmart employs over 148,000 Texans, collects over $1.5 Billion in sales taxes, and pays $318 million in state and local taxes. So, while Walmart paid direct or indirect taxes to Texas governments nearly $2 Billion, Amazon pays zilch, and closed down its warehouse when asked to abide by the same rules as other retailers...and internet geeks applauded them. I give them the middle finger.

agree entirely.

I already disdain and stay away from amazon whenever possible, but that's mainly because it takes them 2 weeks to ship items, when I could pay the same to another internet retail and get it in 3-5 days.

this is just another reason to just stay away from amazon entirely.

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I already disdain and stay away from amazon whenever possible, but that's mainly because it takes them 2 weeks to ship items, when I could pay the same to another internet retail and get it in 3-5 days.

this is just another reason to just stay away from amazon entirely.

Strange. I have been purchasing stuff from Amazon for years and always receive my merchandise within 2 to 3 days. I've only had 1 or 2 issues over the years with them and it was promptly rectified.

I pretty much do all my shopping online, not just for the savings but because I detest going shopping. I like Amazon and Newegg best because of the reviews they post. You can't get that at a B&M store.

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I never had luck with it. I am like the reverse shopper guy.

People go into B&M stores, try on shoes, and clothes, then buy the stuff online for cheaper.

I go to amazon, read the reviews and decide what to get based on feedback, then go somewhere else.

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Even with sales tax and shipping, shopping online is still easier than brick-n-mortar shopping if you can wait or you know precisely what you want. I've been known to do exactly what samagon describes with local music stores, though.

I've seen some disturbing articles about pretty sweatshop-like working conditions at those big online distro centers; wonder if that'll get any traction in the media?

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To be clear, the end user ALWAYS owes the tax. However, the state can only require the retailer to collect the tax on the state's behalf when the retailer has a physical presence in the state. Amazon is attempting to get an undeserved "discount" by refusing to collect the sales tax owed by its buyers, a tactic unavailable to those retailers who actually pony up and build the state of Texas' economy by locating here and employing Texans. Not only do I see no need to praise Amazon for its chickenshit tactics that cost Texans tax revenue, I believe they should be shunned for the disdain they show for our state and our laws.

It should be noted that those internet fanboys who always brag that ecommerce will render brick and mortar retailers obsolete are only encouraging the destruction of our local economy. Many of these internet "hipsters" rush to "like" Facebook pages that lambaste Walmart, even though Walmart employs over 148,000 Texans, collects over $1.5 Billion in sales taxes, and pays $318 million in state and local taxes. So, while Walmart paid direct or indirect taxes to Texas governments nearly $2 Billion, Amazon pays zilch, and closed down its warehouse when asked to abide by the same rules as other retailers...and internet geeks applauded them. I give them the middle finger.

You know, when I shop the criteria are convenience, selection and price; roughly in that order. I'm sorry, but employing Texans or filling the state coffers really doesn't even enter the equation.

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To be clear, the end user ALWAYS owes the tax. However, the state can only require the retailer to collect the tax on the state's behalf when the retailer has a physical presence in the state. Amazon is attempting to get an undeserved "discount" by refusing to collect the sales tax owed by its buyers, a tactic unavailable to those retailers who actually pony up and build the state of Texas' economy by locating here and employing Texans. Not only do I see no need to praise Amazon for its chickenshit tactics that cost Texans tax revenue, I believe they should be shunned for the disdain they show for our state and our laws.

It should be noted that those internet fanboys who always brag that ecommerce will render brick and mortar retailers obsolete are only encouraging the destruction of our local economy. Many of these internet "hipsters" rush to "like" Facebook pages that lambaste Walmart, even though Walmart employs over 148,000 Texans, collects over $1.5 Billion in sales taxes, and pays $318 million in state and local taxes. So, while Walmart paid direct or indirect taxes to Texas governments nearly $2 Billion, Amazon pays zilch, and closed down its warehouse when asked to abide by the same rules as other retailers...and internet geeks applauded them. I give them the middle finger.

Thanks for picking up the reply on this. Been on out for training for a few days - interestingly enough - some of the sessions were on the changes being made to state laws in response to Amazon, etc. Apparently, Amazon has been cutting quite a few of these deals around the country - agreeing to collect sales tax at some future date in exchange for being let off the hook for past violations of nexus rules. Texas' negotiaters actually came out pretty good from the state's point of view - getting the distribution center opened back up and tax collected in about three months - some of these agreements don't start collecting taxes for several years.

What is also interesting, and I haven't seen anything about it in any of the reports on the agreement between Amazon/Texas is now that they have a facility in Texas and are getting into compliance - they will also probably start paying Margin Tax as they will now have a taxable presence for that tax as well. So more $ for Austin.

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You know, when I shop the criteria are convenience, selection and price; roughly in that order. I'm sorry, but employing Texans or filling the state coffers really doesn't even enter the equation.

I agree and I shop for the best deal myself. But I also think that the playing field should be level and not artifically tilted in one direction or another by government without a valid underlying reason (Safety, environmental, blah, blah). A constant federal-mandated 8.25% head start is a huge hurdle for any retail store to overcome.

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I agree and I shop for the best deal myself. But I also think that the playing field should be level and not artifically tilted in one direction or another by government without a valid underlying reason (Safety, environmental, blah, blah). A constant federal-mandated 8.25% head start is a huge hurdle for any retail store to overcome.

Homo Economicus would still prefer not to pay more money in order to 'level playing fields' in favor of brick-and-mortar retailers where he avoids shopping anyway.

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Homo Economicus would still prefer not to pay more money in order to 'level playing fields' in favor of brick-and-mortar retailers where he avoids shopping anyway.

But I prefer not to subsidize your shopping. And since I choose to shop at a variety of places (including both online and offline) I am effectively subsidizing your shopping. How do you think all your tax-free deliveries end up at your door? Until Amazon et al perfects transporters, they traveled on a road. Which was paid for either through the sales tax collected locally that goes back to the cities general funds which pays for roads, through a Metro sales tax diverted to pay for roads or through the states portion of sales tax funds to pay for roads (since the gas tax comes nowhere close to paying for the cost of roads anymore).

So since you readily admit to avoiding paying sales tax - you are effectively a mooch. :P

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Homo Economicus would still prefer not to pay more money in order to 'level playing fields' in favor of brick-and-mortar retailers where he avoids shopping anyway.

If you live in Texas, you OWE that tax, regardless where you prefer to shop. Online shopping is not tax free. It simply does not require the seller to collect the tax.

You are an admitted tax cheat, no matter how cool you think you are for shopping online.

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If you live in Texas, you OWE that tax, regardless where you prefer to shop. Online shopping is not tax free. It simply does not require the seller to collect the tax.

You are an admitted tax cheat, no matter how cool you think you are for shopping online.

Is there the potential for law-breaking and handcuffs here, or are we just being super literal with the law? Because you can get some very nice stainless cuffs online. Anodized in your choice of colors.

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If you live in Texas, you OWE that tax, regardless where you prefer to shop. Online shopping is not tax free. It simply does not require the seller to collect the tax.

You are an admitted tax cheat, no matter how cool you think you are for shopping online.

Shopping online is hardly the path to coolness, and one would have to be pretty strange to think it was. And, to tell the truth, I've been called a lot of names but never 'cool'. Can we say I'm an uncool admitted tax cheat? :D

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  • 2 weeks later...
  • 1 month later...

What I don't understand is why any online retailer like Amazon would choose a state like Texas to open anything, service, distribution etc. I have own a company selling a product primarily on the web and I have to charge sales tax on in state sales. I would be far better off if my company was located in some place like Maine or Idaho. They had to see this coming at some point in time and choosing a state with a large population early on makes no sense to me.

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What I don't understand is why any online retailer like Amazon would choose a state like Texas to open anything, service, distribution etc. I have own a company selling a product primarily on the web and I have to charge sales tax on in state sales. I would be far better off if my company was located in some place like Maine or Idaho. They had to see this coming at some point in time and choosing a state with a large population early on makes no sense to me.

I think (since I haven't looked at all of the documents, and could therefore be completely wrong) the issue was caused by Amazon buying Woot, then arguing that only Woot sales should bear Texas sales tax. The State, however, argued that having a subsidiary here meant that all of Amazon had to collect sales tax. Argumetns ensue, and finally Amazon starts collecting Texas sales tax.

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  • 5 weeks later...

Thought I'd give an update. I found a set of speakers on Amazon that were a couple hundred dollars cheaper than locally, so I decided to buy the in spite of the taxes. To my surprise, the final tab did NOT include sales tax. The purchase was from a retailer in Indiana, though it was ordered through Amazon. I don't know all of the ins and outs of what is taxed and what is not, but this purchase was not taxed.

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Hm, items eligible for Amazon Prime are usually (but not always) fulfilled by Amazon, so if there's a distinction, I would assume it would be the Amazon-fulfilled orders that would definitely apply the tax.

Sevfiv, your recent order was after 7/1?

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Thought I'd give an update. I found a set of speakers on Amazon that were a couple hundred dollars cheaper than locally, so I decided to buy the in spite of the taxes. To my surprise, the final tab did NOT include sales tax. The purchase was from a retailer in Indiana, though it was ordered through Amazon. I don't know all of the ins and outs of what is taxed and what is not, but this purchase was not taxed.

That's happened a couple of times to me also. Seems the only way they tax an item is if it comes through their own warehouse, not through a third party. Many third parties also offer free shipping. This might be Amazon's way of keeping away from taxes which is fine with me.

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That's happened a couple of times to me also. Seems the only way they tax an item is if it comes through their own warehouse, not through a third party. Many third parties also offer free shipping. This might be Amazon's way of keeping away from taxes which is fine with me.

Yeah, I took the free shipping, too. Order it on Friday night, and it will be here tomorrow. That was close enough for me. Shipping and tax saved me $70 on top of the $250 savings over Best Buy. For $320, you bet I'll wait 6 days.

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  • 2 weeks later...
  • 3 months later...

Hm, items eligible for Amazon Prime are usually (but not always) fulfilled by Amazon, so if there's a distinction, I would assume it would be the Amazon-fulfilled orders that would definitely apply the tax.

Sevfiv, your recent order was after 7/1?

Just ordered some Christmas gifts with the free shipping and to my surprise....zero tax. Not sure why, but I'll take it.

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