sales tax

US sales tax isn’t a deterrent to online sales: Report

Years ago, many online retailers, including Amazon, found themselves battling states that sought to force them to collect sales tax even if they didn’t have a physical presence in those states.

The logic behind retailers’ aversion to collecting sales tax wasn’t hard to understand: if given a choice between two retailers, one charging sales tax and one not, many consumers would probably choose the former.

Retailers have bigger problems than Amazon’s Price Check app

Amazon wants your business this holiday shopping season. If you use its Price Check app while you’re out shopping on December 9 or 10 in the US, the e-commerce giant will give you a 5% discount on up to three products you ‘price check’ – for up to $15 in total savings.

Understandably, brick-and-mortar retailers aren’t exactly thrilled. In fact, the Retail Industry Leaders Association (RILA) appears downright angry.

2012: five things to watch

Despite questions about the global economy and volatility in the
markets, 2011 proved that there’s no place quite like the technology
industry, where innovative new services and products continued to win
adoption by both consumers and businesses.

With 2012 just around the corner, it’s time to ask: what’s around the corner?

The fight against Colorado’s internet tax law goes to court

Earlier this year, affiliate marketers and other groups successfully beat back legislation in Colorado that would have required etailers like Amazon.com to collect sales tax for purchases made by Colorado residents if the etailers had affiliates in Colorado.

But Colorado didn’t simply give up on its effort to find new sources of revenue: it passed a bill, 10-1193, that went into effect in March. That bill requires out-of-state retailers with more than $100,000 in sales to Colorado residents to notify their Colorado customers that they must disclose their purchases to the state and pay the state any appropriate sales or use tax.

Amazon battles new use tax assault

State-level bureaucrats in the United States have their eyes fixed on
Amazon and other online retailers. The reason: online shopping, in
theory, results in less tax revenue for their states because these
retailers don’t collect sales tax in states in which they have no
physical presence.

Up until now, a number of states have sought to force Amazon and others
to collect sales tax through legislation that would use in-state
affiliates to create ‘nexus‘. With nexus established, online retailers
would be legally responsible for collecting sales tax.

Amazon uses Colorado affiliates as political pawns

Affiliates in the United States increasingly find themselves at the center of a battle pitting bankrupt state governments against major online retailers. The battle revolves around the thorny issue of state sales tax, and when online retailers are required to collect them.

Recently, affiliate marketers in Colorado were able to get language involving affiliates removed from a tax bill. Had the language not been removed, online retailers with Colorado affiliates would have been on the hook for collecting Colorado sales tax.