Group seeks Amazon boycott over sales tax fight

Aug 15, 2011

(AP) -- A coalition of nonprofit groups is calling on customers of Amazon.com to cancel their accounts unless the Internet retailer stops resisting a California law that requires more online retailers to charge a state sales tax.

The along with several state lawmakers Monday called on Amazon to "stop cheating California" by trying to repeal the law through a ballot referendum.

Amazon's opponents announced a Web campaign intended to organize opposition efforts and explain how customers can close their accounts.

Amazon.com Inc. did not immediately respond to an email and a call for comment Monday.

Lawmakers in June approved a measure to expand collection of California sales tax to more , estimating it would bring in at least $200 million a year.

Amazon has spent $3 million fighting that law.

Explore further: China's Xiaomi raises more than $1 bn in funding

More information: On the Web: http://www.ThinkBeforeYouClickCA.org

3 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

Amazon says gets OK for Calif sales tax referendum

Jul 19, 2011

(AP) -- Amazon.com Inc. says the California Attorney General's Office has approved its petition for a referendum that would let voters decide whether to overturn a new law that forces online retailers to collect sales taxes ...

Amazon wants voters to decide on tax collection

Jul 12, 2011

(AP) -- Amazon.com Inc. wants California voters to decide whether to overturn a new law that forces online retailers to collect sales taxes there, setting the stage for a potentially high-dollar ballot fight next year that ...

Amazon cuts off California affiliates

Jun 30, 2011

(AP) -- Amazon.com Inc. and much smaller Overstock.com Inc. are cutting off their advertising affiliates in California because of a new state rule forcing online retailers to collect sales tax there.

Amazon to cut off California-based Web affiliates

Jun 30, 2011

(AP) -- Amazon.com Inc. said Wednesday that it will stop working with online affiliates based in California since the state passed a new rule that forces online retailers to collect sales tax there.

Recommended for you

China's Xiaomi raises more than $1 bn in funding

18 hours ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 8

Adjust slider to filter visible comments by rank

Display comments: newest first

dogbert
3.2 / 5 (6) Aug 15, 2011
A coalition of nonprofit groups is calling on customers of Amazon.com to cancel their accounts unless the Internet retailer stops resisting a California law that requires more online retailers to charge a state sales tax.


And who might these 'nonprofit groups' be?
semmsterr
3.7 / 5 (3) Aug 15, 2011
A coalition of nonprofit groups is calling on customers of Amazon.com to cancel their accounts unless the Internet retailer stops resisting a California law that requires more online retailers to charge a state sales tax.


And who might these 'nonprofit groups' be?


...and why would I close my account, because I want my Amazon purchases to cost me more?
CasperIV
5 / 5 (2) Aug 15, 2011
So California makes a terrible legislative move, a company exercises their legal rights to leave the state, now they want a boycott? Lawmakers need to stop acting like spoiled children and fix the problems with their states rather than blaming everyone else.
abzu
not rated yet Aug 15, 2011
I missed the science in this one.
89118a
1 / 5 (2) Aug 16, 2011
Tax the owner not the consumer.
Magnette
not rated yet Aug 16, 2011
Is the tax still applicable if the purchase is not from within California? If, for instance, the purchaser lives in Nevada do they still pay? Not being from the U.S I have no idea how sales tax works there.

Perhaps if Amazon feel so strongly about it they should move across the state line?
dogbert
3 / 5 (4) Aug 16, 2011
Magnette,

The Supreme Court has ruled that states cannot require a company which does not have a physical presence in a state to collect sales taxes. A few states have decided that doing business with affiliates in a state constitutes a physical presence, which has resulted in Amazon dropping affiliation with businesses in those states. Some other states are being very friendly to Amazon, such as Tennessee, which has encouraged Amazon to build distribution centers while retaining the exemption from having to collect sales taxes.

California has basically said that it can require Amazon to collect sales taxes for sales to anyone residing in California despite the Supreme court ruling to the contrary. Amazon is refusing to collect the taxes based on the Supreme Court ruling and is seeking to get the California law overturned.

At issue is the extreme difficulty a business has of computing sales taxes to a state where it does not reside. Continued...
dogbert
3 / 5 (4) Aug 16, 2011
Magnette, continued ...

States which collect sales taxes have a state sales tax, county sales taxes and city/municipality sales taxes. If I have a business in Atlanta, GA., for example, I know what the state, county and city taxes are because I reside in that state, county and city. It is difficult for a business located in Washington to determine exactly where a purchaser lives and difficult to accurately determine what taxes that person must pay. The burden on the out of state business is onerous. It is particularly onerous if the out of state business is a small, start up business which does not have large resources.

The Supreme Court's ruling on the matter is a good and reasoned ruling.

If states like California should win their argument, the next logical step for online sellers would be to move their businesses outside the U.S. where they could not be required to collect sales taxes on any sales. This would cost the U.S. many jobs and much revenue.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.