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Author Topic: Amazon to Collect Sales Tax  (Read 744 times)

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HawgWild

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Amazon to Collect Sales Tax
« on: February 10, 2017, 05:18:48 pm »

Amazon, facing legislative pressure. will begin collecting taxes on Arkansas purchases March 1.
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ricepig

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Re: Amazon to Collect Sales Tax
« Reply #1 on: February 10, 2017, 07:05:20 pm »

Good
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Hogs run wild

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Re: Amazon to Collect Sales Tax
« Reply #2 on: February 10, 2017, 09:38:26 pm »

just amazon or every online store?
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HawgWild

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Re: Amazon to Collect Sales Tax
« Reply #3 on: February 11, 2017, 09:46:32 am »

If I'm understanding this correctly, legislation's been introduced to require this of all on-line stores. Amazon did this "voluntarily" though I'm sure they saw the writing on the wall.

There's another bill (HB 1388) that would require out-of-state retailers to provide you with the total amount of purchases you made from them in the previous year. And then, they'd also have to provide this to the state. It wouldn't be too hard at all for the state to compare what you declare with the information they receive.
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grayhawg

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Re: Amazon to Collect Sales Tax
« Reply #4 on: February 11, 2017, 10:13:12 am »

Wonder how this will effect ebay, lots of small business and individuals sell there. I but lots of stuff on ebay because of state sales tax as well as price.
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DeltaBoy

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Re: Amazon to Collect Sales Tax
« Reply #5 on: February 13, 2017, 08:17:49 am »

Well we will see if this hurts Amazon or not.
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NuttinItUp

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Re: Amazon to Collect Sales Tax
« Reply #6 on: February 13, 2017, 12:58:30 pm »

Businesses only have to collect sales tax in states where they have a business nexus. So, if a company has a factory, or a sales rep or an office or anything in a state, then they have to charge sales tax. If not, then they don't. So if a business is based in, say, Oklahoma, and only ships to Arkansas, then they do not have to charge Arkansas sales tax.

Not sure if there is legislation to change that or not, but that is the rule right now.
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ricepig

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Re: Amazon to Collect Sales Tax
« Reply #7 on: February 13, 2017, 01:21:46 pm »

Businesses only have to collect sales tax in states where they have a business nexus. So, if a company has a factory, or a sales rep or an office or anything in a state, then they have to charge sales tax. If not, then they don't. So if a business is based in, say, Oklahoma, and only ships to Arkansas, then they do not have to charge Arkansas sales tax.

Not sure if there is legislation to change that or not, but that is the rule right now.

There's legislation like that, thus the reason for collecting now.
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HawgWild

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Re: Amazon to Collect Sales Tax
« Reply #8 on: February 13, 2017, 01:49:49 pm »

Not sure if there is legislation to change that or not, but that is the rule right now.

Two different bills have been introduced. You're going to pay state sales tax for on-line purchases.
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NuttinItUp

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Re: Amazon to Collect Sales Tax
« Reply #9 on: February 13, 2017, 02:38:11 pm »

Two different bills have been introduced. You're going to pay state sales tax for on-line purchases.

Well I don't live in Arkansas, so no I won't, haha.

Also, technically right now you are supposed to pay sales tax, its just that companies do not have to collect it.

If Arkansas passes this, it would have to be litigated in court and the Supreme Court would have to overturn their previous decision on it for it to be enacted.



"When to Collect Sales Tax Online

If your business has a physical presence in a state, such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers. If you do not have a presence in a particular state, you are not required to collect sales taxes.

In legal terms, this physical presence is known as a "nexus." Each state defines nexus differently, but all agree that if you have a store or office of some sort, a nexus exists. If you are uncertain whether or not your business qualifies as a physical presence, contact your state's revenue agency. If you do not have a physical presence in a state, you are not required to collect sales taxes from customers in that state.

This rule is based on a 1992 Supreme Court ruling in which the justices ruled that states cannot require mail-order businesses, and by extension, online retailers to collect sales tax unless they have a physical presence in the state."

https://www.sba.gov/starting-business/learn-about-business-laws/online-business-law/collecting-sales-tax-online
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NuttinItUp

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Re: Amazon to Collect Sales Tax
« Reply #10 on: February 13, 2017, 02:40:32 pm »

Here is the Supreme Court case that created the current rules if anyone is interested:
https://en.wikipedia.org/wiki/Quill_Corp._v._North_Dakota


(Note: The Supreme Court explicitly said the US Congress has the ability to change this rule, but they have not acted so far.)
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HawgWild

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Re: Amazon to Collect Sales Tax
« Reply #11 on: February 14, 2017, 09:53:18 am »

Amazon has announced that they will collect Arkansas sales tax on purchases made to Arkansas residents prior to the passage of either of these bills. Why would they do this if they didn't feel like they had to?
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DeltaBoy

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Re: Amazon to Collect Sales Tax
« Reply #12 on: February 14, 2017, 03:34:18 pm »

Amazon has announced that they will collect Arkansas sales tax on purchases made to Arkansas residents prior to the passage of either of these bills. Why would they do this if they didn't feel like they had to?

They will do it till the bills fail then they will stop doing it.
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zane

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Re: Amazon to Collect Sales Tax
« Reply #13 on: February 15, 2017, 12:31:11 am »

This is happening in Oklahoma as well
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HawgWild

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Re: Amazon to Collect Sales Tax
« Reply #14 on: March 08, 2017, 04:53:14 pm »

I haven't made an Amazon purchase yet this month. Did they follow through and start collecting Arkansas sales tax? Wal-Mart's doing free delivery and I've found some stuff cheaper there than on Amazon. Seems like every time I click on an item to buy again on Amazon the price has gone up. Darn algorithms!
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PorkSoda

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Re: Amazon to Collect Sales Tax
« Reply #15 on: March 14, 2017, 04:45:23 pm »

I haven't made an Amazon purchase yet this month. Did they follow through and start collecting Arkansas sales tax? Wal-Mart's doing free delivery and I've found some stuff cheaper there than on Amazon. Seems like every time I click on an item to buy again on Amazon the price has gone up. Darn algorithms!
ha, I was wondering about that. 

Two different bills have been introduced. You're going to pay state sales tax for on-line purchases.
how would they enforce it?  they don't have records of out of state business existence, much less out of state business transactions.

On top of that, they risk double jeopardy regarding taxing something twice, if the company is already paying taxes in their home state.

IOW, like with many bills, they will never pass.

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HawgWild

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Re: Amazon to Collect Sales Tax
« Reply #16 on: March 30, 2017, 02:36:39 pm »

FWIW, Amazon is now adding Arkansas sale tax to your purchase. I wish they'd not been so quick to cave. The legislation introduced to require this did not pass. I know it's the right thing to do but it was sure good while it lasted.
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holeinthewall

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Re: Amazon to Collect Sales Tax
« Reply #17 on: March 31, 2017, 10:05:06 am »

The bill failed for this session.   Thankfully..   I have tires I need to order before they try again.
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JIMMY BOARFFETT

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Re: Amazon to Collect Sales Tax
« Reply #18 on: March 31, 2017, 11:04:50 am »

I haven't made an Amazon purchase yet this month. Did they follow through and start collecting Arkansas sales tax? Wal-Mart's doing free delivery and I've found some stuff cheaper there than on Amazon. Seems like every time I click on an item to buy again on Amazon the price has gone up. Darn algorithms!

I made a purchase from Amazon last night and didn't see a sales tax in the total.  If they  tax me retroactively for my online purchases, that could hit pretty hard.
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ricepig

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ricepig

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Re: Amazon to Collect Sales Tax
« Reply #21 on: April 03, 2017, 01:41:39 pm »

Just read this bill was defeated this morning by the House. http://www.4029tv.com/article/arkansas-house-rejects-attempt-to-impose-online-sales-taxes/9224135


I didn't think it would survive, but I knew it wasn't dead Friday.
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Boog41

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Re: Amazon to Collect Sales Tax
« Reply #22 on: April 03, 2017, 01:54:17 pm »

I didn't think it would survive, but I knew it wasn't dead Friday.

I understand the thought process behind it, but for multi state businesses, what a nightmare to have to keep up with, and pay sales tax, to 50 different states.
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ricepig

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Re: Amazon to Collect Sales Tax
« Reply #23 on: April 03, 2017, 03:08:54 pm »

I understand the thought process behind it, but for multi state businesses, what a nightmare to have to keep up with, and pay sales tax, to 50 different states.
I figure it would take about 5 minutes to write a program to do it, now if they had to keep up with city and county sales tax, then......
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holeinthewall

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Re: Amazon to Collect Sales Tax
« Reply #24 on: April 04, 2017, 11:19:42 am »

I understand the thought process behind it, but for multi state businesses, what a nightmare to have to keep up with, and pay sales tax, to 50 different states.

You don't think that won't be next?
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DeltaBoy

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PorkSoda

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Re: Amazon to Collect Sales Tax
« Reply #26 on: April 10, 2017, 01:26:29 pm »

I haven't made an Amazon purchase yet this month. Did they follow through and start collecting Arkansas sales tax?
I don't live in arkansas, but I did make an amazon purchase recently and got charged a small tax around 1% of the order.  So it looks like amazon is charging taxes in some places, but I'm not really sure how it all works.  if it has to do with where the shipping originates or what.
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Hogs run wild

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Re: Amazon to Collect Sales Tax
« Reply #27 on: April 10, 2017, 07:39:20 pm »

I haven't made an Amazon purchase since they started taxing. My wife says that they are charging taxes, but only on some items, not all items. I went to the website to see if it was true, and it seems that items sold directly from Amazon are charged taxes. Those that are sold by sellers on Amazon are not all charging taxes. It's weird.
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HawgWild

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Re: Amazon to Collect Sales Tax
« Reply #28 on: April 12, 2017, 10:55:13 am »

I'm guessing you're right. I placed my first order since February today and wasn't charged sales tax.
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YoMama

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Re: Amazon to Collect Sales Tax
« Reply #29 on: April 12, 2017, 12:01:30 pm »

I recently placed an order where Amazon collected sales tax only on the items sold by Amazon.com.  My other items sold by a different seller like 'Woo Pig Sooie Shop fulfilled by Amazon' then no sales tax was collected.
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HawgWild

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Re: Amazon to Collect Sales Tax
« Reply #30 on: May 14, 2017, 11:45:37 am »

FWIW - I placed a Walmart.com order a couple of weeks back and was charged 6% sales tax. My local Walmart collects 12.5% sales tax when I buy there. 6.5% savings to have stuff shipped free to me at home. Not bad.
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DeltaBoy

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Re: Amazon to Collect Sales Tax
« Reply #31 on: May 24, 2017, 08:50:38 am »

We not be charged here in Texas yet.
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ImHogginIt

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Re: Amazon to Collect Sales Tax
« Reply #32 on: May 24, 2017, 08:59:10 am »

We not be charged here in Texas yet.

They have been collecting the 6.25 state sales tax here in Texas for several years and in some areas local tax as well. Here in Allen , TX we pay 8.25 % on Amazon orders the same as we would anywhere in the city.
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