The article about the continuing discussion at the legislature as to whether or not to charge Amazon state sales tax is telling. One would think that with all the talk about promoting our local economy, the state wouldn’t miss the chance to level the playing field with a company like Amazon. Apparently millions of dollars per year is going uncollected, and the article indicated that the Governor was moving away from it. Now isn’t the time to pass up millions, Governor, nor is it time to abandon local retail. The economy is troublesome and we can’t play favorites.
Eleanor Arroway
Scottsdale
Arizona Willie posted at 12:46 pm on Wed, Mar 21, 2012.
All it takes for Amazon to collect the sales tax is about 50 lines of programming so each state gets it's sales tax added on at checkout.
It would take a good programmer and hour or two maybe.
No problem at all for the company to do it and relatively ZERO expense to the company.
But, no, can't bother a company ... make the millions of Arizonans figure out how much they bought from Amazon and add it into their tax forms so they can pay individually.
Much better to annoy taxpayers than to bother Amazons computer.
sockratties posted at 2:29 pm on Wed, Mar 21, 2012.
Sales taxes should be collected to pay for those things that support the purchase. Streets, infrastructure, law enforcement, traffic control, and parking are some of that support. Vendors collect sales taxes and the taxes are used to provide the brick and mortar vendor and customer a place to do business. If there were no businesses we wouldn't need a sales tax. Amazon has a fulfillment center here. They don't do any local retail sales so those services required by a brick and mortar store are not used. They have an impact on the community that is similar to that of light industry which pays no sales tax. They contribute to the community with jobs and leasing of facilities and taxes paid on utilities and local purchases. If Amazon needs to be taxed for shipping items to a warehouse, storing them, then shipping them out, so does UPS, FedEx, the USPS and commercial warehouses.
This is not a tax and revenue issue, although government always wants to grab and squander every cent it can. It's local businesses not wanting to compete with online sales. When a local dealer gives me advice, a friendly environment, and a competitive price I'll buy from them, even if I have to add the sales tax. Too often I find price, service and convenience are superior with online stores including Amazon.com.
Arizona Willie posted at 7:49 am on Thu, Mar 22, 2012.
sockratties ... the items are purchased and warehoused in Arizona.
The fact the order is received by a computer in another state is irrelevant.
Claiming they don't do business in Arizona is sophistry at best.
The shipping companies you mention don't warehouse the goods here. The goods come into their delivery warehouses ( no better word for it in my vocabulary ) and are immediately put on trucks for delivery as soon as possible. They don't sit on the shelves for months waiting for orders to come in. The shippers don't sell the items.
BIG DIFFERENCE
Claiming there are no retail sales involved opens the door for all companies to take orders by computer in the Cayman Islands and tell you to pick the item up at what used to be their retail store but they now call a warehouse.
Why should Amazon object to collecting the sales tax?
It is only some entries in their computer code. It doesn't take legions of clerks to add the sales tax.
There is virtually no expense to Amazon at all.
It can be a BIG hassle for individuals to keep track and add up all the stuph we buy every year through online companies.
Of course, it is somewhat unfair that Amazon is told to collect the tax and places like Tiger Direct and Newegg and thousands of other online stores can't be told to do it ( by Arizona at least -- the Feds could tell ALL online stores to collect state sales taxes ) --- but life is unfair.
If it cost Amazon a great deal of money to collect the tax that would be one thing.
But it doesn't.
sockratties posted at 9:16 am on Thu, Mar 22, 2012.
AZW – I agree with what you say as to it not being a big deal for Amazon.com. And yes, UPS does offer the service of warehousing your product and shipping it as you request. I also agree that Amazon does business in Arizona, but they don't avail themselves of the services required by a walk-in retail store any more than a wholesale store (no sales tax) does, so why should they pay for them.
This is a two-fold effort; 1) local dealers don't want the competition because they want you to have to pay them more, and 2) the government wants your tax dollars which they will have to spend none of to support Amazon's business.
Money not collected in taxes does not belong to the state. It's ours unless they have a legitimate reason to collect it. “Leveling the playing field” as described by the author is not a legitimate reason as it also can be interpreted to mean “get rid of the competition.” I haven't heard any explanation from our legislature as to how this money would be used to enhance the quality or your or my lives.
Arizona Willie posted at 9:57 am on Fri, Mar 23, 2012.
socratties ... I'd bet the Amazon warehouse has security alarms and if they go off the police respond.
Service used same as retail store
If the fire alarms go off ... the fire department comes.
Service used same as retail store
The good sold by Amazon are delivered to their warehouse ( some ) by truck and sent out by truck over the roads.
Service used
So I believe Amazon < DOES > use state and local services.
And, in fact, it is unfair to local businesses when online businesses can sell to people and not charge them sales tax.
It gives the online business a competitive edge.
While I do indeed buy a lot of stuff through Amazon and other online retailers -- in all honesty I have to say that they should collect sales tax to put them on a more even footing.
The online retailers already have a big edge in that they don't have to pay leases on fancy stores in shopping malls or strip centers. And many of them don't even have an inventory. They are third party sellers and you order through them and another business has the items in stock and THEY ship it out.
Thus the online retailers can have an extremely broad line of goods to sell with much lower costs.
I usually buy computer parts online because I :
1 ) get them cheaper
2 ) don't have to spend my gas / time / mileage on my vehicle to go get them
A few keystrokes and they are delivered right to the door.
On top of those advantages why should we give online retailers any more edge?
Local businesses are important ... if I absolutely gotta have something NOW I can drive to Fry's Electronics or the appropriate store and pay the price to get it.