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Well CARP! Amazon and taxes


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Those of us in TX now have to pay state sales tax when we buy from amazon. Poo! and POO!! :banghead::cursing:

 

Amazon sent a notice that they will be providing total annual purchase amounts to my state's Department of Revenue. My state will then be looking for a Sales and Use Tax filed by buyer with sales tax payment remitted.

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Amazon sent a notice that they will be providing total annual purchase amounts to my state's Department of Revenue. My state will then be looking for a Sales and Use Tax filed by buyer with sales tax payment remitted.

 

That is such a complete pain in the butt. So you are supposed to keep track of all this on your own?!

 

I don't mind paying the taxes as long as Amazon is collecting them for me (Texan here). It would take WAY too much effort to keep track of the taxes myself.

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Yes because I imagine unless someone makes a huge purchase it's pretty easy to just not claim it.

 

Most states already asked that you report your internet purchases from those retailers who don't collect. It's just that most people don't do it. It's not just Amazon, it's any online retailer that doesn't charge you tax (and they don't charge if they don't have a real location on your state).

 

The difference for TX and a few other states, is that Amazon has facilities in TX and those few other states, so the state of TX requires them to collect tax on the sale. It's been a battle for a few years. Sounds like Amazon lost. I know they had that same battle with a few states, and actually pulled out their facilities, or plans to build over having to collect sales tax on those in-state purchases. I believe their argument was that they didn't have retail locations in the state, only the warehouse/shipping so the state tax laws didn't apply to them. Some states gave in to Amazon, in order to get the jobs that comes with them. My state did that.

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Those of us in TX now have to pay state sales tax when we buy from amazon. Poo! and POO!! :banghead::cursing:

 

 

I thought this was required in most states. In VA if you don't pay sales tax on an internet or mail order purchase you are supposed to pay "use tax" and there is a place on the state tax form you file yearly to put in your required "use tax". It is an honor system. I've always paid it. Many people I know don't pay it and are surprised to learn that they are supposed to pay. I think it is likely I've underestimated how much I've owed in the past, but now it's easier to figure and dh is adamant about getting it right.

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I thought this was required in most states. In VA if you don't pay sales tax on an internet or mail order purchase you are supposed to pay "use tax" and there is a place on the state tax form you file yearly to put in your required "use tax". It is an honor system. I've always paid it. Many people I know don't pay it and are surprised to learn that they are supposed to pay. I think it is likely I've underestimated how much I've owed in the past, but now it's easier to figure and dh is adamant about getting it right.

 

:D LOL The "problem" is that there is no state income tax in TX. We don't file, period. So now apparently they are taxing at the point of sale.

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That is such a complete pain in the butt. So you are supposed to keep track of all this on your own?!

 

I don't mind paying the taxes as long as Amazon is collecting them for me (Texan here). It would take WAY too much effort to keep track of the taxes myself.

 

:iagree:

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I was clueless that I'm supposed to be paying sales tax on internet purchases. WOW! I thought that was the whole benefit to shopping online---paying shipping versus sales tax.

 

I really don't care that online retailers hurt brick and mortar stores. Online retailers create jobs, don't they? And the overhead it would cost a brick and mortar store to carry everything that Amazon sells would be impossible. You take a risk buying online that you won't like it, it doesn't fit, the color is wrong, etc. There should be a benefit to offset the risk and to me not paying sales tax when you can't go into the store and purchase it locally should be the benefit. There are not any Amazon locations where you can purchase products in Texas that I'm aware of.

 

Obviously I don't agree with the ruling, but have not researched it at all. Just my ramblings...

 

gggrrrrr..... :glare:

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Those of us in TX now have to pay state sales tax when we buy from amazon. Poo! and POO!! :banghead::cursing:

 

I'm glad they are.

 

I first started using amazon in Washington, where of course we had to pay sales taxes. In other states with sales taxes you were supposed to voluntarily pay the sales taxes, but just about no one did. Now amazon is going to collect it for you so you are in compliance with state law. They are still the best place to buy a whole bunch of stuff.

 

(And I live in TX now)

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At the risk of sounding weird..we've always paid state sales tax on internet purchases including amazon. I think the law has always required it but it was honor system for taxpayers so to speak and now they are collecting for you?

I fill out this worksheet every year on my state taxes and always pay. This past year it took me forever to calculate. Seriously, I spent several hours and had to make a spreadsheet. I had places where I'd gotten discounts after the thing was defective, returns, blah blah, all the various shops, and so on, some in foreign currency. Ack! I wish they'd just collect it and save me time. I'd rather not come up with a lump sum at the end of the year. That being said, I was so horrified by how much I'd spent on line (most particularly at Amazon) that I have made an effort to not shop. Sigh.

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I fill out this worksheet every year on my state taxes and always pay. This past year it took me forever to calculate.

 

I always check the box in turbotax that is the blanket amount of tax because we shop a lot online and I am not going to track it all year.

 

I had to pay sales tax recently on a purchase on amazon and was really surprised. So surprised that I commented on it to DH. But it was from a third party vendor whose headquarters are in my state, so that's why.

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I always check the box in turbotax that is the blanket amount of tax because we shop a lot online and I am not going to track it all year.

My state has an estimate, too, but it's way too low so I do my best to calculate it. Last year was especially puzzling and exhausting. Never again!

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I was clueless that I'm supposed to be paying sales tax on internet purchases. WOW! I thought that was the whole benefit to shopping online---paying shipping versus sales tax.

 

I really don't care that online retailers hurt brick and mortar stores. Online retailers create jobs, don't they? And the overhead it would cost a brick and mortar store to carry everything that Amazon sells would be impossible. You take a risk buying online that you won't like it, it doesn't fit, the color is wrong, etc. There should be a benefit to offset the risk and to me not paying sales tax when you can't go into the store and purchase it locally should be the benefit. There are not any Amazon locations where you can purchase products in Texas that I'm aware of.

 

Obviously I don't agree with the ruling, but have not researched it at all. Just my ramblings...

 

gggrrrrr..... :glare:

 

I don't care so much about hurting the brick and mortar stores either, but it does hurt the state if people aren't paying sales tax on their online orders, especially if the money spent online would have otherwise been spent in brick and mortar stores in the state (which do collect sales tax).

 

We usually owe a few hundred dollars (!) in sales tax at the end of the year, and I'm sure many others do too. It's easy to see why the state would like to collect the tax on the front end when many people don't voluntarily pay the tax on the back end.

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