Re: Online sales tax bill is approached with caution - Michelle Quinn - POLITICO.com

2 views
Skip to first unread message

Philip Diehl

unread,
Jul 19, 2012, 1:53:44 PM7/19/12
to coincollec...@googlegroups.com, Jimmy Hayes, Barry Stuppler, Scott Barman
Worth noting from this article:

- the Amazon agreements with the states do not effect us unless you're planning to open a distribution center in a state and are concerned about them going after back taxes they claim you owe.

- the quote from the spokesman for the Norquist organization
Is a strong suggestion they could oppose the bill as a violation of the no-tax pledge

- a hearing on the bill is scheduled for July 24 in House Judiciary.

Since there are so few legislative days left in this Congress, the best chance of killing this is through delay. Then they'll have to start from scratch next year.

Sent from my iPhone

On Jul 19, 2012, at 12:36 PM, Philip Diehl <diehl....@gmail.com> wrote:

> I've beat this drum for a while, but I still think the connection with the no new taxes pledge is our best way of beating the online sales tax bill.
>
> Philip
>
> http://www.politico.com/news/stories/0712/78681.html?wpisrc=nl_wonk
>
>
> Sent from my iPhone

Philip Diehl

unread,
Jul 19, 2012, 4:03:30 PM7/19/12
to Scott Barman, coincollec...@googlegroups.com, Jimmy Hayes, Barry Stuppler
I think Texas has reached a similar deal with Amazon: something along the lines of Amazon opening a distribution site in the state and paying sales taxes going forward in exchange for Texas not going after back taxes.

There's a great deal more online sales tax revenue at stake than the Amazon revenue, and the states are desperate to get it. Plus the B&M retailers will keep pushing it. I have my doubts the Amazon deals with the states will slow momentum on the bill in Congress.

Best,

Philip

Sent from my iPhone

On Jul 19, 2012, at 1:29 PM, Scott Barman <sc...@barman.ws> wrote:

> As part of the negotiations with the states, Amazon was granted other tax relief deals to build distribution sites in the states. Because the revenues go back to Seattle, where Amazon is based, the states will make more on the sales taxes than the business taxes.
>
> In New Jersey's case, Amazon was practically given an old Jamesway warehouse. Jamesway has been closed for over 10 years and their central Jersey warehouse has sat empty since Barnes and Nobel stopped using it about 8 years ago. The money the state will lose on property and other business taxes will be more than made up by payroll taxes for the jobs they will bring to the state and their sales in New Jersey.
>
> In Amazon's last 10-Q, it was reported that they will be testing same-day delivery of some items in some areas. It was indicated that the first tests will be in a Los Angeles suburb (no exactly location given) and New Jersey. If it works, Amazon could open more distribution centers in more states where they will be collecting taxes. If that happens, this issue would calm down until the states decide they need more money.
>
> For dealers who use the Amazon marketplace to supplement their sales, does Amazon's presence in New Jersey mean that marketplace vendors will also have to collect New Jersey sales taxes?
>
> Scott
>
> Sent from my iPad 2

Philip Diehl

unread,
Jul 19, 2012, 1:36:48 PM7/19/12
to coincollec...@googlegroups.com, Jimmy Hayes, Scott Barman, Barry Stuppler

Scott Barman

unread,
Jul 19, 2012, 2:29:15 PM7/19/12
to Philip Diehl, coincollec...@googlegroups.com, Jimmy Hayes, Barry Stuppler
As part of the negotiations with the states, Amazon was granted other tax relief deals to build distribution sites in the states. Because the revenues go back to Seattle, where Amazon is based, the states will make more on the sales taxes than the business taxes.

In New Jersey's case, Amazon was practically given an old Jamesway warehouse. Jamesway has been closed for over 10 years and their central Jersey warehouse has sat empty since Barnes and Nobel stopped using it about 8 years ago. The money the state will lose on property and other business taxes will be more than made up by payroll taxes for the jobs they will bring to the state and their sales in New Jersey.

In Amazon's last 10-Q, it was reported that they will be testing same-day delivery of some items in some areas. It was indicated that the first tests will be in a Los Angeles suburb (no exactly location given) and New Jersey. If it works, Amazon could open more distribution centers in more states where they will be collecting taxes. If that happens, this issue would calm down until the states decide they need more money.

For dealers who use the Amazon marketplace to supplement their sales, does Amazon's presence in New Jersey mean that marketplace vendors will also have to collect New Jersey sales taxes?

Scott

Sent from my iPad 2

Reply all
Reply to author
Forward
0 new messages