Sales taxes: Is Georgia next in line for Amazon.com?
First South Carolina, and now Tennessee. Is Georgia close behind as Amazon.com adds more states where it will eventually collect sales taxes?
The Associated Press reports Tennessee is the latest state to strike a deal with the online book retailer for an exemption in collecting sales taxes in exchange for investing millions of dollars in the state’s economy. Amazon has a similar deal with South Carolina.
Amazon, which will start collecting the Tennessee tax in 2014, promises to add 2,000 full-time jobs at two new distribution centers. It gets an exemption through 2015 in South Carolina in exchange for 2,000 created jobs.
A 1992 U.S. Supreme Court ruling prohibits states from forcing businesses to collect sales taxes unless they have a physical presence, such as a store or warehouse.
“States are trying to get around the Supreme Court restriction by passing laws that broaden the definition of a physical presence,” the AP says.
Sales taxes are still required on online purchases, however, but it’s the buyer’s responsibility to report what’s due and settle up with the state. Of course, few individuals actually fess up to the taxes they should be paying on online purchases.
Here’s the link to Amazon’s sales tax policy.
Christopher Seward
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29 comments Add your comment
BigDawg
October 6th, 2011
7:00 pm
First to say enough sales taxes!
BigDawg
October 6th, 2011
7:01 pm
And too much taxes overall, does NoBama have a clue??
Fed up
October 6th, 2011
7:04 pm
No more taxes. Seriously. I’m fed up with higher and higher taxes.
doug
October 6th, 2011
7:07 pm
BigDawg: I’d just like to point out that sales taxes are levied by states, Pendejo.
SAWB
October 6th, 2011
7:25 pm
Oh boy more taxes just what we need to go along with the new toll road. Buying useless crap on Amazon was one of the few vices I had and now Nathan (let’s make a )Deal is going to kill that. Man when do I get to vote NO on T-Splost and NO on incumbents? Run a Pig against Nathan and I’ll vote for him who knows he might do a better job and if he screws up we can have a BBQ.
Mr. Obvious (Channeling Margaret Thatcher)
October 6th, 2011
7:27 pm
Regardless of the additional taxes, Obama and his socialist ilk will eventually run out of OTHER PEOPLE’S money to spend on perpetually buying the votes of the lazy, the sooty and the stupid.
LydiasDad
October 6th, 2011
7:46 pm
It’s time to start cheating on taxes every which you can.
Keith
October 6th, 2011
7:52 pm
If Georgia just arbitrarily forces Amazon to collect sales taxes for online sales to GA residents, then Amazon will cancel all affiliates agreements with GA residents just like they’ve done in Illinois and a few other states… putting thousands of small businesses out of business.
Jackpot
October 6th, 2011
7:53 pm
BigDawg should change his name to BigDummy!
Bob
October 6th, 2011
8:16 pm
BigDog,
You ain’t seen nothing yet, the “Fair Tax” plan for Georgia and the rest of the nation, promoted by Rush, and his wanna be, will really stick in your craw each time you buy something. When it goes into effect, one day, if you are so lucky, our recession will turn into a depression, in no time at all. Time to buy gold. Tough days ahead.
The Bald Eagle
October 6th, 2011
8:19 pm
Wow. Some people really have no clue how our government works. Not surprisingly, the ignorant are usually the first to complain.
Peter
October 6th, 2011
8:33 pm
Just boycott Amazon.com …. then they can enjoy making less money.
Ronin
October 6th, 2011
8:45 pm
Sorry Bob, you don’t know what you’re talking about. A consumption (Fair Tax) or Flat tax (or both) is the way to go. The current tax code is simply used to play politics.
Kneel Borezt
October 6th, 2011
9:04 pm
The so-called Fair Tax will NEVER be implemented. It’s a pipe dream hatched up by rich azzholes to protect more of their money.
jack bauer
October 6th, 2011
9:09 pm
More taxes to buy more votes…………that’s the american way.
Ronin
October 6th, 2011
9:36 pm
Hmm… So, Kneel, as you see it, we’re better off keeping the current tax code? The Fair tax is basically a consumption tax. Rich people have more money and spend more, thus pay more in taxes, where’s the rub?
I’m not stuck on the Fair Tax, but almost anything would be better than the current debacle we call the tax code.
Mishap
October 6th, 2011
11:47 pm
Rich people spend less of their income than they make. The family making 50k annually likely spends everything they make on life’s basics. The single guy making 150k probably doesn’t spend much more than the avg family and the ratio only gets worse when you actually start reaching into rich person category. I’d probably shave 15-20k/yr off my tax bill if the fair tax were enacted but I know for a fact that it’ll never happen b/c it won’t be revenue neutral (think massive underground economy) and it takes away much of Congress’ ability to dictate behavior.
They also have the means to consume outside the boundaries of taxation. Fair tax in GA = buy stuff out of state and drive it back(things like flat panel tv’s, etc…much harder if all you buy is groceries). Fair tax nationally = build a villa in Mexico and stock it w/ a few Ferraris from not having to pay taxes on any of your income.
mr. big
October 7th, 2011
1:29 am
raise taxes! the government needs more money to pay out more stuff! raise taxes!!! more money is needed–the gov’t is broke! hurry—I need money.
FarmerRob
October 7th, 2011
2:07 am
Bob, You Ignorant Slut! You could not be more wrong about the Fair Tax! Let’s put it in the simplest terms–We are paying about 22% in imbedded taxes now in the form of corporate taxes that are added, along the way, to the cost of everything you buy. Under the Fair Tax corporate taxes would be gone. You would pay 23% in Federal sales tax. You are NOT paying an additional 23%–it has been shifted. However, you will not be paying ANY Federal withholding tax on your paycheck. You will get to keep all of your earned income and you decide where and when to spend it. There is a monthly adjustment to everyone for the cost of basic cost of living.
You Need to get the Fair Tax Book by Boortz and Lender and actually READ IT! before you sound off and show your ignorance. They explain it so that even a simpleton can understand it.
Ronin
October 7th, 2011
7:24 am
@mishap. your statement: “Rich people spend less of their income than they make. The family making 50k annually likely spends everything they make on life’s basics.” Sorry, that dog won’t hunt. The vast majority of the wealthy like their toys and spend most of their income. Just look at the high end housing market, mortgaged to the hilt, short sales, huge credit card debt. I’ve done background checks on the so called wealthy, many are putting on a show and keeping up an image. They won’t change their spending habits and will pay more in taxes. The main thing is, government won’t have direct control over what they take from you, to buy a vote from a different group.
Also, a fair, flat or consumption tax is a national/federal issue, so driving across state lines to save money is not a factor. Learn more about the truth before forming an opinion.
Gracie
October 7th, 2011
8:21 am
Enough is enough. To ALL States: Learn how to save money instead of spending it before you get it.
Learn how to spend taxpayers dollars on worth while projects instead pork for your buddies. Learn how to become honest instead of becomng a policitical crook. Last, but not least, get off your fat butt and get a real job !!!
Small Business Man
October 7th, 2011
9:05 am
So people get to come in my store, where I have to collect sales taxes, look around and spend time with my employees…then pull out their phone and order the product from Amazon because it is “tax free”?? Even though it isn’t – it’s just that the state forces me to collect it and doesn’t force them to. Gee, I’m sure glad I created jobs in this state (yea right) – I would have been better off renting a basement in Alabama and only selling online. But then again, 13 Georgians would not have a job today if I did that.
Jeff
October 7th, 2011
10:40 am
THINK, people! This issue with Amazon is not about NEW taxes and it’s not about RAISING taxes. It’s about asking Amazon to abide by the law and collect and remit the same sales taxes that your neighborhood businesses already have to collect and remit.
Do you REALLY want your friends and neighbors who own local businesses and who are working hard to make your community better and who support your local economy to be at a disadvantage to a multi-national corporation which does nothing but take money OUT of your community?? Get real. Why should Amazon get special treatment? Is it fair? NO BREAKS FOR AMAZON!!
BTW – you are required by Georgia law to pay sales (”use”) tax on all that stuff you bought at Amazon.com. Would you rather the gov’t come after you to collect it, or go after Amazon?
amazon
October 7th, 2011
11:25 am
amazon gets no benefits from states they ship merchandise to–why should they have to pay the same taxes as local companies that get police and fire protection, roads, etc.??? No taxes on Amazon!
Z
October 7th, 2011
1:32 pm
The Fairy Tale Tax…Just read the book, read the book, read the book..Malarkey! It only helps the rich and takes from the poor and middle.
GaNative
October 7th, 2011
6:11 pm
If they tax amazon, then I will find somewhere else to buy it. In fact when I buy things on eBay, I make sure that the vendor is not in Georgia to avoid the sales tax. The state is already taxing our azz to death. Today in the AJC it said state revenue is up, well, so is unemployment. Georgia should be doing things to ease the tax burden, we have a state lottery and don’t need a state income tax. As far as the current Income Tax System, it needs to be changed. It does nothing but give the Government control over where you live, how much you make, how many kids you have, how many cars you have, where are your savings accounts, where are your investments, etc. It’s all about control and they don’t want to give that up. The idiots that think a Fair Tax would hurt the poor is just not thinking clearly. How can a pay as you spend tax hurt the poor? If they don’t have any money, then they can’t spend, thereby there is no tax.
Sales taxes: Is Georgia next in line for Amazon.com? – Atlanta Journal Constitution (blog) | Georgia Taxcuts Info
October 7th, 2011
7:29 pm
[...] Sales taxes: Is Georgia next in line for Amazon.com?Atlanta Journal Constitution (blog)Is Georgia close behind as Amazon.com adds more states where it will eventually collect sales taxes? The Associated Press reports Tennessee is the latest state to strike a deal with the online book retailer for an exemption in collecting sales taxes in …y más » [...]
Ronin
October 7th, 2011
8:01 pm
@GA native ,6:11 yep.
Sharde
October 7th, 2011
9:27 pm
“Of course, few individuals actually fess up to the taxes they should be paying on online purchases.”
Christopher you don’t know that for a fact. Please offer some proof of your assertion. Perhaps you’re just repeating something you heard in the media? My belief, which is as valid as yours, is that there is close to 100% compliance with the online sales reporting requirement. Most of us report every single penny.