Barnes And Noble Happy About California's E-Fairness Legislation And Amazon's Exit

blogs.publishersweekly.com:

Forty-eight hours after Gov. Jerry Brown signed California's sales tax fairness provision, which requires out-of-state retailers to collect taxes on sales made to California customers, Barnes & Noble has issued a statement.

"We thank Governor Jerry Brown for demonstrating his commitment to California businesses by signing e-fairness into law..."

Read the whole story: blogs.publishersweekly.com

Comments

[SF TKF]

10:50 AM on 07/06/2011

How do people not get that the only losers here are the small businesses in CA that were making money as affiliates (and who were already paying sales tax). This is a lose/lose law.

[Cecil Cain]

01:13 AM on 07/07/2011

Nonsense. They'll just switch to a different affiliate network. The smart businesses are the ones who diversify among affiliate networks and their transition will be relatively painless.

[MrGovtCheese]

02:29 PM on 07/02/2011

Does this apply to intangible goods and services as well? Subscription like The Wall Street Journal online, Consumer Reports, ESPN Sportszone, adult sites, etc. That would suck because they aren't competing with brick and mortar stores.

[frank day]

01:44 PM on 07/02/2011

Gov. Brown is spot on with this move.

Other states should quickly follow his move, and definitely will.

[MrsGreebers]

10:12 PM on 07/02/2011

And Amazon will simply cut off their affiliates, never paying a penny in sales tax. Shoppers will still shop there, never knowing the difference. See Illinois, NY and NC.

What is Brown spot on about? Doing the bidding of Wal-mart?

[dsouthard]

01:10 PM on 07/02/2011

Texas tried to collect back taxes from Amazon because they operated a distribution warehouse here. Amazon closed the warehouse and left.

In any event, even if Amazon.com was required to collect state taxes, I would still use them as much as I do today. The convenience of not having to run all over DFW looking for something I can find in a few clicks on Amazon.com would more than make up for it.

[ucche]

12:57 PM on 07/02/2011

California: Always first to tax.

[StoutHouse]

10:27 AM on 07/04/2011

California is actually the fifth or sixth state to pass an e-fairness law like this one. See New York's so-called "Amazon Law" for starters.

[larstein]

05:15 PM on 07/04/2011

Ya, but we have the weather.

[AquaBuddha]

12:54 PM on 07/02/2011

But for the cropping of the arms, that's a great photo.

[Ffranco]

12:54 PM on 07/02/2011

The internet is mature enough now that internet merchants can be expected collect sales taxes on online purchases.

[Mark Alston]

01:12 PM on 07/02/2011

One would think that it would be that simple. And maybe so for large retailers like Amazon. However, many many on-line retailers are small mom and pop operations. My small homebrew shop sells across the country. If we only had to deal with 50 individual sales taxes that changed annually that would be one thing. However, there are a myriad of individual city and local taxes that change on a very inconsistent basis. Trying to deal with that and stay current on all those tax rates and then to remit sales taxes to 1000's of individual counties or cities would make it nearly impossible to make on-line sales.

My business is not alone. Small on-line retailers exist to serve hundreds of weird niche industries. Those retailers would be killed by having to deal with all these individual taxes. Amazon will simply move on and deal with it. Small retailers are the ones who will be hurt by these laws.

Sometimes those things that seem really easy are not so easy to implement.

[dsouthard]

01:19 PM on 07/02/2011

Good point.

[Cecil Cain]

01:15 AM on 07/07/2011

Nah, the smart affiliates are on multiple networks anyhow. They'll just point their amazon links to Commission Junction, LinkShare, or Google Affiliate Advertisers.

[Soliel]

10:20 AM on 07/02/2011

I am of two minds here. I am against the increased taxation so the state can get more money. They have been irresponsible and all they think about is how to get more no matter how much the private sector is suffering. On the other hand, it's simply unfair to have competition like that that doesn't have to pay taxes while the brick and mortor stores must pay rent, HIRE local people, etc.

I am for Amazon and other retailers taxing their goods but I want sales taxes to go down. Already 10% in my area and that is too much. I hope they don't tax used goods. Used goods should not be taxed twice.

[MrsGreebers]

09:02 PM on 07/02/2011

Shipping isn't free.

[SF TKF]

10:52 AM on 07/06/2011

"Used" goods are most certainly taxed in your local economy. Go to any used book store or antique store or Good Will and guess what, you'll pay sales tax on your purchase.

[dreadylocks]

10:16 AM on 07/02/2011

Taxing across state borders is prohibited in the constitution. So if that's what they are trying to do, this law shouldn't stand. However, if Amazon is not charging tax even when someone makes a purchase from a merchant in their own state, that's a horse of a different color. But which is it?

[Ffranco]

12:52 PM on 07/02/2011

I live in Washington state (where Amazon is based) and Amazon adds sales tax onto my purchases.

[SF TKF]

10:54 AM on 07/06/2011

Amazon DOES charge sales tax if you make a purchase from an instate affiliate. This is a total boondoggle and will not result in one red cent entering the CA coffers (in fact, it will cost us money, as it will cost the CA affiliates sales).

[catinca]

10:02 AM on 07/02/2011

All internet sales should be taxed plain and simple

[bryanzth]

09:31 AM on 07/02/2011

I gave up on Border's and Barnes and Noble for service, inventory and welcome. It's true, the brick and mortar stores that collected sales tax just weren't doing it for me. In fact, when Border's started fronting so many conservative books and media (on tables where you walk in) and backgrounding science, arts and culture books (putting them on the backsides of those tables or simply to the back of the store), well that was it for me, AND FOR SALES TAX for my city and state (Chicagoland, IL).

So then I started using Amazon, which at that time did not collect sales tax for anyone. Well, I just didn't buy from them, but from their third party re-sellers, some even in my own state. They didn't collect sales tax either. And so NO SALES TAX was being collected for books, CDs, Media, games, gifts and other items.

Since the early 00's, many other things have been available online in much better quantity and with the ease of shopping that untrained, surly and unfriendly clerks in big box corporate never seem to acknowledge is part of a pleasant retail experience. And all without SALES TAX BEING COLLECTED.

So, I am here to say that the online marketplace has gotten ahead of government revenue collection. I have found better ways to get things than going to brick and mortar, for sure, but I never thought that my village, city, township, county and state would be cut out of that.

Bottom line, you can't live in a community or society without paying the piper. If you think so, get your Hummer off my roads -- you're wearing off the alsphalt. ;0)

For a better "America", PAY YOUR TAXES - Municipal, Township, County, State and Federal.

BZ.

[SF TKF]

10:55 AM on 07/06/2011

You do know that Amazon is a major GOP contributor, right?

[Cecil Cain]

01:22 AM on 07/07/2011

"In fact, when Border's started fronting so many conservati­ve books and media (on tables where you walk in) and background­ing science, arts and culture books "

So I'm not the only one who noticed this! I thought perhaps I was crazy! I have never had an issue with B&N and after seeing Amazon cut tail and run I'm glad I went the Nook route instead of the Kindle route. To be honest I'll be happy to switch my Amazon links to BN.com's affiliate links (they use LinkShare). Smart affiliates like me have multiple affiliate accounts anyhow. Amazon's melodramatic actions are the perfect reason why. http://www.barnesandnoble.com/affiliate/

[Tenley]

09:11 AM on 07/02/2011

Amazon has been dumping THOUSANDS of its affiliates in states left and right -- and wants them to turn against the states (and fight for this great corporate citizen to keep not collecting sales taxes). It's disgusting.

[MrsGreebers]

04:42 PM on 07/02/2011

Since the Quill case (pre-ecommerce), no out of state retailer has had to collect sales tax. That includes all mail-order businesses. Remember catalogs? Amazon didn't come up with some new scam here.

Now big chain stores are arguing that little me in my home office is a full fledged physical presence if I put an Amazon ad on my website. Surely that logic is insane. By that logic if a magazine sells ad space, they are a physical presence.

[StoutHouse]

10:40 AM on 07/04/2011

"Amazon didn't come up with some new scam here."

Fist of all, laws change when current realities demand it, particularly if existing law is unfair. Secondly, Amazon has been exploiting this tax loophole since its founding, even in states where they have massive distribution warehouses and offices. Just because Amazon's lawyers register those warehouses as a subsidiary company to avoid taxes doesn't mean those taxes aren't owed. It's a legal shell game, and it's transparently offensive to any reasonable person.

The government shouldn't subsidize an unfair tax advantage for massive corporations like Amazon while mom and pop retailers, the heart of American business, are made to pay their fair share. It really is that simple.

Besides, you said it yourself -- the Quill decision was pre-ecommerce. We need new laws that reflect the current online reality. California just passed one.

[Cecil Cain]

01:24 AM on 07/07/2011

Haha, I say "piss off Amazon. There are brick and mortar retailers here in CA paying CA leases, taxes and having to share CA sales taxes." That reminds me. Time to delete my Amazon wishlist. I don;t want a friend/family member buying me anything from there.

[dennis1943]

08:54 AM on 07/02/2011

Must swim against the current here..........have never quite understood the rationale for internet tax exemption,,,,,,,,,,,,,

[Tenley]

09:13 AM on 07/02/2011

There isn't an exemption. You stil owe the taxes. Amazon just doesn't want to collect them, despite the fact that it's a giant and had thousands of affiliates in the state.

[bryanzth]

09:40 AM on 07/02/2011

True. Tax collection and then disbursal requires a superb computer and channel system... Hey wait, Amazon has all that. Just a few lines of code and... oh wait, that still will require the CFO to hire a few people to disburse all that tax to the various bodies, just as each and every retail store must do for their respective municipal, township, county and state.

So what happened? Amazon roughly got traction in the 00's during the...... OHHH during a Republican administration of the Bushies. And possibly following a compromised Democratic administration of Clinton. Amazon went online in 1995. Give it 3-5 years to get traction, and the end of Clinton's admin was marred by the Gingrich sponsored impeachment business. I am right. And let's face it, all of this culminated in the 2007 - present Financial Meltdown called the Third Great Depression, which among other things cut the revenue of municipalities, townships, counties and states.

It all fits. Amazon was a patsy in the GOPer scheme to ruin the United States of America (USA).

For a great "America" PAY YOUR TAXES - Municipal, Township, County, State and Fed.

BZ.

[MrsGreebers]

04:49 PM on 07/02/2011

National retailers understandably don't want to have to collect sales tax from every state and/or town and then reconcile and send them in.

[Ari Sedona]

08:32 AM on 07/02/2011

Another brilliant move by the once golden State of CA. It didn't take long for liberals to unionize and tax everything in CA to spread the wealth to the lazy. Now CA newest tax just lost a bunch of potential income and most likely more jobs. For what? Oh.. To educate illegals.

[Phil Lunney]

09:28 AM on 07/02/2011

Those nice rich folks that have all slaved for every dollar...the corporations that pay exorbident bonuses to the exec's and don't want to fund healthcare so they outsource...they ship products over our roads and don't want to pay for infrastructure...why would we want them to share the cost. Those lazy workers like the custodians that clean these spaces over night and carry out our trash, why should they get any benefits living in a cheap place like LA or San Fran. It is only Golden for the Haves, your right (very Right) Ari.

[laserstain]

08:01 AM on 07/02/2011

this is called Cronyism. Its corporations working with government to help them remove competition in their markets. This is not a good thing....

[Tenley]

09:15 AM on 07/02/2011

So you're all for in-state businesses going under because an out-of-state businesse THAT JUST DUMPED THOUSANDS OF ITS AFFILIATES IN YOUR STATE won't play by the same rules?