Whoa there pardner! What in tarnation is this? Texas is investigating Amazon for not paying income taxes because they have a facility in Texas?! WHAT?!
I am a proud Amazon Prime user. Amazon is my first choice for whatever I want to buy. My last three purchases on Amazon were dog toys, lightbulbs, and toothpaste. I order everything. A printer, a water bottle, a video game, a pepper grinder, a vacuum. I rely heavily on Amazon's reviews and competitive prices. Why? BECAUSE AMAZON CHARGES NO TEXAS SALES TAX!
I hate taxes. I already pay enough taxes in my life up here in the 33% bracket. If I can avoid my ridiculous over 8% local sales tax, I will! So, whose brilliant idea was it at Amazon to set up a facility in Texas??? I don't even know what that facility does. I order a lot from Amazon, and I have stuff shipped out of Kentucky, Nevada, and Oklahoma. I've never seen Texas, and I was grateful to Amazon for that because I didn't have to pay taxes because they didn't have a facility in Texas (so I thought).
So, Amazon, if this is true, move those Texans to Oklahoma or Nevada or wherever else it is you can employ people. Close that facility!
4 comments:
Better make sure that Texas doesn't charge "use tax", like Ohio and Michigan and many other states do. If you mail order something and aren't charged sales tax, you're legally obligated to add the local sales tax on that to your state tax return in those states....
Trying to avoid 8% sales tax by mail ordering could get you into a world of hurt if you get audited and you should have been paying use tax...
Hi Dog, I enjoy reading your blog and have added it to the Sites I Visit on my PF blog if that's okay.
As for the Sales Tax issue, they are trying that in New York as well. From my understanding of the issue, it doesn't matter if Amazon has a standing facility in the state, they just have to do a substantial amount of business in the state to be subject to state sales taxes. To be honest, I am surprised Amazon has been able to avoid state sales taxes this long since they do such widespread business in all 50 states. It will be interesting how it plays out from a business perspective. I do think that Amazon will continue to have bargains just from a volume point of view.
After a brief review of Texas law, it is apparent that Texas does in fact have use taxes.
If you buy from a company over the internet, have something delivered to you in Texas, and they do not collect sales tax for you, you are required to pay use tax at the going sales tax rate to the state of Texas.
You may not like Amazon charging you state taxes, but if they didn't, you would be required to pay the taxes yourself.
If you aren't paying these taxes, you are in violation of Texas law, and Lord help you if you get audited...
hm...use tax...no idea!
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