Amazon Tax

A new California law, taking effect since July 1st, requires large, out-of-state retailers to collect sales taxes on Internet purchases by California customers. Called the “Amazon tax,” the law was signed Jun 29th by Gov. Jerry Brown in hopes of raising an estimated $317 million annually to help close a yawning budget gap.

Amazon offered strong resistance to this new law. Amazon has already terminated its affiliate programs in such state as Arkansas, Colorado, Connecticut, Illinois, North Carolina, Rhode Island and Texas.

This activity is based on the new law's conditions. New law said that even affiliates in California regard as physical sales office in the state.

Meanwhile, large retailers such as Best-Buy support this new law.

They complained about current situation that only Amazon didn't collect sales taxes is really unfair.

The top picture was shown at the meeting that is held by Best-Buy to stock holders and it showed the enforcement situation of the e-fairness.

E-fairness is the official name of "Amazon tax"  Best-Buy conducted their strong lobbying activity by using forty nine thousand dollars.

Amazon also suggested new idea that if California state government cancel

this law, Amazon promise to make some blanches in California and hire at least 7000 of new employee. Amazon knows that California is facing growing unemployment. However, most of retailers rejected this idea.

They said that we only focused on its unfair situation about sales tax.

To tell the truth, I am a heavy user of Amazon.com. I think it's convenience, lower price and of course no-tax. Also, easy to return is one of advantage point. But at the same time, I understand that California state is suffering from the lack of revenue shortages. Also, I know a lot of customer are trying to check items at the physical retailers and then buy it on Amazon.

 I think it is unfair.

Also, I'm worry about being the worst scenario.

I mean if Amazon terminates all affiliates in California, California states government can't get tax and no hiring. Some affiliates have already left from California.

I think that originally, on-line shopping is easy and convenience but at the same time, we have to pay shipping fee instead. If you don't want to pay it or you want to check the goods yourself, you should go to the physical retailer.

I believe that physical retailers and net retailers can be reconciled.

State government should control the tax equally as much as possible.

 Written in July 2011 and revised 2012