Amazon, Indiana strike state sales tax deal

[malern28us]

why is eveyone so upset? having you been lying on your state taxes? may not be on the short forms, but on the longer form, there is a question about out of state purchases, and paying the taxes on those sales -- while I don't like it, the requirement has been there for a while

So, you are saying that you are obeying every state law at all times? I hope that you have never been swearing near water in Michigan. If so, you need to go turn yourself in.

 

[henktermaat]

So, you are saying that you are obeying every state law at all times? I hope that you have never been swearing near water in Michigan. If so, you need to go turn yourself in.

This ain't Michigan.

 

[Lex Concord]

why is eveyone so upset? having you been lying on your state taxes? may not be on the short forms, but on the longer form, there is a question about out of state purchases, and paying the taxes on those sales -- while I don't like it, the requirement has been there for a while

Maybe it's because it's a step in the wrong direction.

If something is not level, you may choose to raise one side, or lower the other...Indiana, sitting on a $1.6 billion surplus had the option to level the field by lowering or ditching the sales tax altogether...unfortunately, they chose not to think outside the box.

 

[Grizhicks]

I never said I haven't broken a law; it's just not worth getting upset on them finding a way to inforce something that has been the law anyway -- it's not like it's a new law....

 

[malern28us]

This ain't Michigan.

wow thanks.

 

[bwframe]

I never said I haven't broken a law; it's just not worth getting upset on them finding a way to inforce something that has been the law anyway -- it's not like it's a new law....

I've been a giver my whole life. You sound like a taker.

 

[Davegrave]

I've been a giver my whole life. You sound like a taker.

Match made in heaven. Maybe you guys should grab dinner and see where things go.

 

[qmikep]

Guess I have to find another place to buy books from.

 

[buckstopshere]

While I dislike the abuse of tax dollars,

I am happy for the Indiana's brick and morter retail outlets
having a more level means of selling their products.

I don't agree with this whole line of thought that somehow a brick and mortar business is somehow at a disadvantage.

There is a difference between price and value. No matter how savvy a consumer you are, everyone buys based off a perceived value.

Brick and mortar = I can have it right now. You should be able to charge a premium for expedited service.

Now, I have to pay sales tax (which is a whole other load of crap. See Prometheus post earlier in the thread for solid argument against it) but if I buy from amazon or other online retailer, I have to pay shipping. In most cases, those two costs are pretty close. Plus, I have to wait.

Since when did Indiana business become so lazy? Go sell and market your advantages. GOA!!!

 

[CampingJosh]

So, you are saying that you are obeying every state law at all times? I hope that you have never been swearing near water in Michigan. If so, you need to go turn yourself in.

Indiana has no authority to collect taxes on transactions that cross state lines.

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

U.S. Constitution, Article I, Section 10, second paragraph.

They can't tax you for bringing stuff in. You can choose to pay them, but it's voluntary at best.

 

[Lex Concord]

Indiana has no authority to collect taxes on transactions that cross state lines.



U.S. Constitution, Article I, Section 10, second paragraph.

They can't tax you for bringing stuff in. You can choose to pay them, but it's voluntary at best.

And if Amazon is the importer? They have enormous warehouses in IN. Return address is in-state more often than not.

Edit: Your qualification of crossing state lines just registered...duh.

 

[Indy317]

Amazon saw the writing on the wall. Anywhere they eventually move will have leaders waiting to get their hands on tax money. You think brick and mortar outfitters in Montana and Wyoming will be happy to see their customer base using Amazon to avoid paying taxes? Eventually the company will get sick of constantly moving, plus they need to be in areas where shipping is as reliable as can be. While we can get some bad snow storms here in Indiana, they almost always get massive snow storms in Montana and Wyoming. Imagine the trucks not being able to get to the warehouses, or out of the docks, for days on end.

This news tells me Amazon knows they won't win this game. They like Indiana, possibly due to our network of highways, lower cost of living which means the don't have to pay as much to their workers, etc.. My guess is that they also support the whole right to work thing which would make it harder for unions to get a foothold in the warehouses.

 

[Zoub]

It is coming. Technically you are responsible for the tax on anything you buy. The government wants its cash.

I briefly crossed paths with the estimated tax bill from IDOR to Amazon and a half dozen other large web based businesses. To say it was substantial would be a fair statement.

 

[cobber]

If Indiana retailers could offer anywhere near the variety of stuff you find on Amazon, this bill would make more sense to me. I usually buy from Amazon out of necessity. Paying sales tax on that isn't going to change that fact, nor will it drive me to frequent local retailers, Simon malls included.

So this will pour more dollars into Mitch's deep pockets, but I doubt whether retailers in the Hoosier State are going to derive much benefit from that.

And this pertains only to Amazon? So buyers can turn elsewhere and the state doesn't get that tax money.

This is very well thought-out legislation.

Glad we don't have a tax 'n' spend Demo in the guv'nor's office.

 

[cburnworth]

I usually purchase on-line due to a wider selection, cheaper(well before sales tax is an issue) , I don't have to spend allot of time looking for it, & lastly Customer reviews can be seen for most items not just the sales person opinion. I go to the store to touch & feel, get things immediately & when I just can't decide on-line. When I do go to the store I usually buy it there. I think that sales tax is BS, I think that the additional taxes that get tacked onto sales tax is BS. Are not most things that go into the product already taxed?

 

[Prometheus]

Indiana has no authority to collect taxes on transactions that cross state lines.



U.S. Constitution, Article I, Section 10, second paragraph.

They can't tax you for bringing stuff in. You can choose to pay them, but it's voluntary at best.

You are 100% correct... I do believe that is why Indiana technically refers to it as a use tax instead and attempts to skirt the US Constitution in that regard.

In any event, any buyer who thinks the buyer is legally responsible for paying sales tax hasn't read the law. It is a tax imposed on the seller to sell at retail.

Just because most retailers choose to charge that tax separately doesn't mean jack.

In any event, mitch daniels is still a POS.

 

[slow1911s]

Amazon doesn't pay sales tax. it remits the taxes we pay. Amazon is a tax collection agent of the state of Indiana. There are few, if any, other business that operate under an Indiana RRMC and who have a physical presence in this state that are not obligated to charge, collect, and remit Indiana sales tax for transactions that start and end in Indiana. Why should Amazon be any different?

The potential dollars at stake are somewhere (estimated) between $75 and $100 million. The day this bill was passed was the same day the Simon dropped their lawsuit against IDR.

2014 is also the year that the current statute on inheritance tax expires. That tax also is responsible for $75 to $100 in revenue for the state. How's that for timing?

 

[slow1911s]

In any event, any buyer who thinks the buyer is legally responsible for paying sales tax hasn't read the law. It is a tax imposed on the seller to sell at retail.

Neither have you.

IC 6-2.5-2
Chapter 2. State Gross Retail Tax
IC 6-2.5-2-1
Imposition; liability; payment; collection
Sec. 1. (a) An excise tax, known as the state gross retail tax, is imposed on retail transactions made in Indiana.
(b) The person who acquires property in a retail transaction is liable for the tax on the transaction and, except as otherwise provided in this chapter, shall pay the tax to the retail merchant as a separate added amount to the consideration in the transaction. The retail merchant shall collect the tax as agent for the state.
As added by Acts 1980, P.L.52, SEC.1.

emphasis added

 

[Prometheus]

Amazon saw the writing on the wall. Anywhere they eventually move will have leaders waiting to get their hands on tax money. You think brick and mortar outfitters in Montana and Wyoming will be happy to see their customer base using Amazon to avoid paying taxes?

There are 4 states that do not have a sales tax.... Just like there are some states that don't have income taxes either.

 

[hornadylnl]

Amazon doesn't pay sales tax. it remits the taxes we pay. Amazon is a tax collection agent of the state of Indiana. There are few, if any, other business that operate under an Indiana RRMC and who have a physical presence in this state that are not obligated to charge, collect, and remit Indiana sales tax for transactions that start and end in Indiana. Why should Amazon be any different?

The potential dollars at stake are somewhere (estimated) between $75 and $100 million. The day this bill was passed was the same day the Simon dropped their lawsuit against IDR.

2014 is also the year that the current statute on inheritance tax expires. That tax also is responsible for $75 to $100 in revenue for the state. How's that for timing?

It seems that those who support inheritance taxes have no inheritance coming to themselves.