[poll id=”206″]
I usually oppose all new taxes, but there is growing sentiment that online retailers should collect sales tax in each state they do business in and forward that money to the respective states. I think that is fair.
Why should a company like Amazon.com sell books in California without charging sales tax? That is unfair competition to the brick and mortar stores in our state.
The L.A. Times addressed this issue in an editorial today. Here are a few excerpts:
California has considered a law requiring nationwide online retailers to calculate, collect and remit sales taxes that buyers are supposed to pay but rarely do. Assemblywoman Nancy Skinner (D-Berkeley) introduced AB 178, and Democrats included her approach as part of the budget proposal they sent Gov. Arnold Schwarzenegger.
Based on the Legislature’s action, Overstock.com severed its relationship with its California affiliates. Now that Schwarzenegger has made clear he won’t sign the bill, he’s taking credit for Overstock reversing its decision and for protecting Californians from new taxes.
Wait a minute. The governor’s action did not protect anyone from having to pay more tax. Californians owe the $1 billion in use taxes anyway. The only question was whether the law should be changed to require online companies to charge the tax at the virtual checkout counter. It should; but there is a fairer way to do it than the New York-like approach in AB 178.
That approach, after all, does penalize the growing sector of California-based online businesses that match buyers with great deals all over the Web. Many of those businesses would be deemed affiliates, and would be dumped by companies that don’t want state ties to turn into requirements to add sales taxes.
Our state is broke. Of course we ought to cut more waste from the budget – but allowing giant online retailers to sell products here without collecting sales tax is ridiculous. Schwarzenegger is wrong on this one – and if that means that California affiliates will be dropped by the unethical online giants, then we ought to ask California’s residents to not spend their money on those websites.
This is not about new taxes. It is about treating all businesses in our state fairly. Allowing giant online retailers to undercut our own local stores is just plain nuts!
I voted no!… not because I am opposed to all taxes but because the internet is not California’s infrastructure and state is not maintaining it.
It would be taxation without representation.
The taxation is not to collect money and to spend it on the socialistic programs but to build infrastructure so the private sector can do business and create jobs, and people can have safe environment to pursue their happiness.
Yet you have no problem with street vendors operating without paying taxes or even a business lic.
#2,
I never said that! I think they should register with their respective cities and pay their taxes.
However, the cities should not charge so much for the licenses that the vendors cannot afford to pay for them…
You are already supposed to declare your out-of-state purchases over the Internet. Take a closer look at the 540… And here: http://www.boe.ca.gov/pdf/pub79b.pdf
It is called use tax.
Of course, pretty much nobody does that.
Similarly in other states. That’s why some states have decided to no longer rely on the “honor system”, and started to charge taxes at the source, i.e., the seller.
And I expect CA to do the same any day now.
If you buy something from an out-of-state retailer that would be subject to California sales tax if bought here, in the state, You do owe Use-Tax and are required to pay it to the state.
There is a line on the 540 return for that purpose.
The internet tax the government money junkies are salivating over is a new tax in addition to the sales/use tax already in place.
“”Beats me – I am too broke to buy stuff online “”
I went to the “Free” show today at the Plaza of Flags, but it was held in the parking lot. The middle school had a good show followed by a Mexican Beauty show with young girls (Grade school 6-12 age) I enjoyed the show even tho half was Spanish language only.
They also had “pay for” food and gift vendors and a traveling ride vendor too.
No one were going on the rides, or buying the food or gifts.