If you've got items sitting in your Amazon shopping cart that you've not yet purchased, you might want to consider moving into the checkout line.
Friday is the last day to buy from the online retailer tax-free: Amazon will begin charging sales tax on purchases for California residents this Saturday. Sales tax in the region varies, including 8.75 percent in Los Angeles.
Up to now, buying online at Amazon.com saved customers money, since no sales tax was collected.
But state lawmakers in California—a state which desperately needs cash—reached an agreement last year with online retailers, including Amazon, that agreed to begin collecting a sales tax in September. Those sale tax funds will be returned to the state.
According to the LA Times, about half of the projected $316 million raised in the first full year, and put into state coffers, is expected to come from merchandise sold by Amazon.
The agreement between Amazon and California may not last long. The Orange County Register reports that the agreement between the two parties was primarily a compromise meant to get a year's reprieve in collecting the tax in exchange for promises to add jobs and distribution centers in California.
Increased prices for online purchases is welcome relief for brick-and-mortar stores, who feel the playing field for customers will be a bit more level.
CNNMoney says Amazon already charges sales tax in six states: Kansas, Kentucky, New York, North Dakota, Texas and Washington. Pennsylvania will join California in sales tax charges in September. New Jersey, Virginia, Indiana, Nevada, Tennessee and South Carolina are all expected to collect state sales taxes from online retailers within the next few years, adding millions to state accounts.
States estimate they lose $23 billion in annual sales taxes, some $11.5 billion of it from online purchases, according to the National Conference of State Legislatures.
Meanwhile, Seattle-based Amazon has been expanding its physical presence in California, according to the San Francisco Chronicle. The Chronicle says that in June, it leased 83,000 square feet just south of San Francisco's Financial District, and is close to signing a deal for 600,000 square feet in Sunnyvale.
Amazon is also expected to open two California fulfillment centers that will employ at least 1,000 workers each in San Bernardino and Patterson.
If you're interested in applying for those jobs, Amazon has set up a website to receive applications.
Do you think paying sales taxes on Amazon purchases is fair? Will it affect your shopping habits? Share your thoughts in the comments.
And BTW, has anyone noticed that after the US's credit rating was downgraded, thanks to the Teapublican manufactured crisis in the House of Representatives, the US government has been locking in record-low borrowing costs?
Right on, frank!
YOU may not mind being accessed ever increasing, & new Taxes to finance failed administration policies, I am not so inclined.
And, where did the money go? It went to local city and state budgets that were broke and just helped balanced their budgets. That is only a temporary fix for their budgets because sooner or later they will go broke. And, now the money is gone and there are no new jobs, it only helped saved a few jobs but those will soon be lost too. Government should not be trying to save cities and states and companies from going bankrupt, which is going to happen anyway because of waste and mispending, governments and businesses should not be bailed out. They should go bankrupt and then allowed to restructure and hopefully come back. The government does no one any favors by not allowing the free market to work. It only allows waste and poor management to continue.
http://www.thefiscaltimes.com/Columns/2012/06/01/Whos-the-Biggest-Spender-Obama-or-Bush.aspx#page1 http://www.washingtonpost.com/blogs/ezra-klein/post/the-reality-behind-obama-and-bushs-spending-binge/2012/05/25/gJQAK8ItpU_blog.html http://money.cnn.com/2012/06/22/news/economy/obama-spending/index.htm http://www.politifact.com/truth-o-meter/statements/2012/may/23/facebook-posts/viral-facebook-post-says-barack-obama-has-lowest-s/ http://thinkprogress.org/economy/2012/03/19/446990/obama-bush-reagan-government-spending/?mobile=nc And this relates: http://thinkprogress.org/economy/2012/06/01/493849/obama-bush-jobs-record/
Obama has a deficit 5 times the amount that Bush had.
LOL... And when the rate is down but the amount is way up what does that relationship between the two tell you?
Hmm... Which part of this California-wide issue is NOT local to West Hollywood?
Of course I agree w/ nonoise. She obviously knows how things work... and, FYI, I am a regestered Green. I voted for Cynthia McKinney last time around ( and Kerry, before that). You see, I believe in voting my stated principles. I am in favor of Peace, Equality, & Social Justice. The Modern Democratic Party doesn't believe in those things. They don't fight for the People, has they once did, decades ago. I'm a fiscal conservative. I don't believe in throwing good money after bad. I don't believe that government can engage in taxzation without representation. (We fought a revolution over that.) Educate yourself on where the bulk of your taxes go, you might think differently about giving gov. carte blanche w/ your pocket book. Then again, you may one of these folks who don't mind working for gov., but most Americans realize gov. is there for the People's benefit, & not the other way around... That's all. You can go ahead and post another insulting comment if you like!
We are on the same page, dude, apology accepted.
-Ben Franklin
Like to be green? Like sustainability? Well this situation is not sustainable!
BTW, that's not a Ben Franklin quote.
"I've never understood how otherwise intelligent people have no grasp of citizenship and society. How people can believe that they exist in a vacuum and dont want to pay for the things that make America the amazing place that allowed them to take advantage of their hard work and talent."
Unvbelievable. Yes Bush sucked but so does Obama, the most responsibility-dodging president in US history. And yes, he is a socialist. There. I feel much better.