It's really a legal debate. The rules for state sales tax have been on the books for years now and it basically comes down to tax nexus. Does your business and the transactions it generates have enough connection within a certain state to be considered taxable. These terms are applied across all companies, not just Amazon, no matter how big or small. The battle in Amazon's case is whether a distribution center within a state constitutes tax nexus. Texas is one of 6 states suing Amazon for delinquent sales tax. This is one that I don't think Amazon will ultimately win. Assuming they did their due diligence, they knew the rules of each state regarding sales tax liability. Their tax avoidance strategy is pretty aggressive. In light of the current national economic situation, I expect states will be extremely aggressive in prosecuting these situations to make up for their large budget shortfalls.
kah On Feb 15, 2011, at 11:51 AM, Jan Triplett wrote: Because of the makeup of Refresh-Austin, I wanted to get feedback on your concerns about requiring Amazon to pay state sales tax. I am trying to gather information for a government colleague. Thank you for your input. Here's to your success! Jan Triplett, Ph.D. Business Success Center -- Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin -- Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin
