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re: Amazon To Start Charging Sales Tax In Arkansas

Posted on 2/10/17 at 7:04 pm to
Posted by Warfarer
Dothan, AL
Member since May 2010
12141 posts
Posted on 2/10/17 at 7:04 pm to
quote:

They don't even have a physical store. Mo money for the guv'ment I guess.



Alabama has a program that is voluntary to online sites. They can charge the 8% sales tax and then only give alabama asks for like 4 or 6% so Amazon is making a couple percent off of the sales.
Posted by JustGetItRight
Member since Jan 2012
15715 posts
Posted on 2/11/17 at 7:38 am to
quote:

Alabama has a program that is voluntary to online sites. They can charge the 8% sales tax and then only give alabama asks for like 4 or 6% so Amazon is making a couple percent off of the sales.


You're terribly confused. Amazon most certainly does not get to keep anywhere NEAR the amount you suggest. Online retailers collect 8% sales tax. As a 'fee' for acting as collection agent, they're allowed to keep 2% of the tax collected and not 2% of total sale amount. If you buy a $1000 TV, Amazon would collect $80 in sales tax and get to keep $1.60 - 2% of that $80. If you're still suffering from righteous indignation, Alabama law lets cities extend the same right to their brick and mortar stores so (many, but not all do it) online retailers aren't getting any special deal.

This has been needed for a very, very long time. Online retailers already have many advantages over brick and mortar stores. Since states most consider the point of sale to be the delivery destination, the tax is owed to each state but with the corporation in another state there's been no ability to collect. Local businesses faced an unfair competition because they can't match the price discount and local & state governments lose out on revenue they're legally owed.
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