Amazon & Sales Tax in Arkansas

Discussion in 'After Hours Lounge (Off Topic)' started by Johnny Angell, Feb 14, 2017.

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  1. Johnny Angell

    Johnny Angell Played With Dinosaurs Member

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    There was a bill going thru the Arkansas legislature requiring online out-of-state merchants to collect sales taxes. Amazon announced it would begin doing so March 1. It was either today or yesterday the bill failed in committee.

    I'm hoping Amazon will reverse course and not collect the sales taxes for purely selfish motives. I suspect they will not change there minds. Damn.
     
  2. Malcolm R

    Malcolm R Executive Producer

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    Unlikely that they'll reconsider. Amazon started collecting sales tax from their Vermont customers on Feb 1 even though there's nothing compelling them to do so. Amazon just announced around New Year's that they would start collecting it.
     
  3. Scott Merryfield

    Scott Merryfield Executive Producer

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    They began to collect sales tax in Michigan about a year ago. However, items purchased through a third party seller on Amazon still is not taxed.
     
  4. Alf S

    Alf S Banned
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    Oklahoma started collecting their Amazon tax last week. Yay! :(
     
  5. Tony Bensley

    Tony Bensley Producer

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    For better or worse, the eventual collecting of Sales Tax everywhere by Amazon seems inevitable. In Canada, it has reached the point that even the Amazon Canada third party merchants are collecting Sales Tax. No more free lunches for we Canucks.

    CHEERS! :)
     
  6. Johnny Angell

    Johnny Angell Played With Dinosaurs Member

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    Hiss! Boo! Hiss!

    Not you guys, just the situation. :(:(
     
  7. gadgtfreek

    gadgtfreek Supporting Actor
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    It was odd when it started here in Alabama. I still use Amazon for a lot of things, like dog food, etc... because it is cheaper. But with electronics and movies I find myself using Best Buy now, or a retailer like Value Electronics who has no tax.

    Reason being is, and not sure if it is because BBuy has in town stores, but the internet tax on an Amazon purchase is 8%, where BBuy is 5%. So I can get a blu-ray for the same base price, and less tax, 2 day shipped for free from BBuy.
     
  8. skylark68

    skylark68 Supporting Actor

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    Texans have been paying this tax for awhile. I believe it's because we have a distribution facility. Fun stuff.
     
  9. Malcolm R

    Malcolm R Executive Producer

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    Like Scott said, third-party sales still seem to be tax free for the moment, though the price may be higher and/or you may have to pay shipping.
     
  10. DavidJ

    DavidJ Producer

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    And I wish I had made a purchase before it started...
     
  11. Josh Steinberg

    Josh Steinberg Lead Actor
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    FWIW, just because Amazon hadn't been collecting that tax doesn't mean that you haven't been required to pay it. There's a part in the tax forms each year to declare out of state purchases and pay the appropriate tax on them there. It's far easier for Amazon to collect it directly than to try to figure out what you bought from who and where a year later.
     
  12. DaveF

    DaveF Moderator
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    They've been collecting in NY for several years. And they collect in VA too.

    Turns out, life goes on.
     
  13. DaveF

    DaveF Moderator
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    For complete list currently:
    Items sold by Amazon.com LLC, or its subsidiaries, and shipped to destinations in the following states are subject to tax:

    Alabama
    Arizona
    California
    Colorado
    Connecticut
    District of Columbia
    Florida
    Georgia
    Illinois
    Iowa
    Indiana
    Kansas
    Kentucky
    Louisiana
    Maryland
    Massachusetts
    Michigan
    Minnesota
    Mississippi
    Missouri
    Nebraska
    Nevada
    New Jersey
    New York
    North Carolina
    North Dakota
    Ohio
    Pennsylvania
    Rhode Island
    South Carolina
    South Dakota
    Tennessee
    Texas
    Utah
    Virginia
    Vermont
    Washington
    West Virginia
    Wisconsin
    https://www.amazon.com/gp/help/customer/display.html?nodeId=468512
     
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  14. Josh Steinberg

    Josh Steinberg Lead Actor
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    Yeah, Amazon has been collecting it from me for at least a decade.

    I find it way easier to pay up front than to try to figure out what I owe at the end of the year.
     
  15. DaveF

    DaveF Moderator
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    I'd forgotten about the self-reporting tax form option. That was a farce.

    Yeah. I got over my outrage some years ago.
     
  16. Josh Steinberg

    Josh Steinberg Lead Actor
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    (Deleted by author)
     
  17. DavidJ

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    Yes, our state calls it a use tax and you could opt to calculate it out if you thought it would be below the single amount selected by the state or you could just pay the flat rate. The flat rate worked out great for me.
     
  18. Clinton McClure

    Clinton McClure Casual Enthusiast
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    As it turns out, most of the country doesn't self-report out of state sales taxes for online purchases and the IRS doesn't enforce the rule either.
     
  19. David Norman

    David Norman Producer
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    With the nearly dozen new states adding mandatory collection of Amazon sales tax since Jan 1 the tax situation looks like 98% of the US population are now paying local B&M and Amazon the same state tax rate. Local taxes still lead to some disparity though it seems to go both ways with some places apparently paying more tax at Amazon than at their usual B&M.

    All the 5 remaining hold out states have 2M or less population with New Mexico at 2M being the largest individual
     
  20. Aaron Silverman

    Aaron Silverman Executive Producer

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    The IRS has nothing to do with sales/use taxes. Those are state taxes.
     

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