Article

2010-02-21 Economy

Lawmakers want to tax Amazon sales in California

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Posted by Fred 2010-02-21 00:00|| || Front Page|| [1 views ] Top

#1 " The U.S. Supreme Court has finally spoken on the issues in two cases that will have far-reaching and long-term effects on our state and local tax scheme. Quill Corp. v. North Dakota, 5/26/92, addressed sales and use taxes, and Wisconsin Department of Revenue v. William Wrigley Jr., Co., 6/19/92, addressed corporate net income.

Quill involved an out-of-state mail order company's obligation to collect sales or use tax for goods sold in North Dakota, Wrigley involved the limits of PL 86-272, in conferring immunity from Wisconsin state net income taxes based on mere solicitation of goods by out-of-state sellers.

In Quill, the Court held that the Commerce Clause prohibited a state from imposing an obligation on an out-of-state mail order company (without any physical presence in the state) to collect sales or use tax on goods sold to in-state residents. Advertising and direct mail solicitation were not "doing business" for sales or use tax purposes. A physical presence within the state was needed to provide the nexus required for the state to impose an obligation to collect ,ales and use tax on the company; economic presence was not enough." - source

Amazon just has to dump any of its affiliated, as opposed to general, suppliers in California. That'll help business and employment. Keep your neighbors employed California. Nevada will love you.

Posted by Procopius2k 2010-02-21 08:41|| 2010-02-21 08:41|| Front Page Top

#2 yep - my Aunt lives in Fernley, NV, which was a sleepy agricultural town about 28 miles northeast of Reno. Was, as in, not anymore. Amazon built a regional distribution warehousing complex there and now employs about 80% of the new residents. Residents that bought new houses, shop at new stores...

Amazon will never put a foot down nor dollar in CA's treasury. Our own CA bastards have made the state so unfriendly to business.... Now there's a throw em all out movement I could get behind

Posted by Frank G 2010-02-21 09:34|| 2010-02-21 09:34|| Front Page Top

#3 Amazon has "built an entire business model based on tax avoidance," said Assembly tax committee Chairman Charles Calderon (D-Montebello).

And so has all of the industry and manufacturing that has moved overseas. I really can't imagine why.

Posted by Besoeker 2010-02-21 11:23|| 2010-02-21 11:23|| Front Page Top

Disapproves

Posted by DMFD 2010-02-21 17:43|| 2010-02-21 17:43|| Front Page Top

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