http://www.wfmz.com/business/Amazon-com-....

HARRISBURG, Pa. -
Beginning Saturday, Amazon.com Inc. will start collecting Pennsylvania sales tax on orders that are shipped to the state, a spokesman said Wednesday.

The online retail giant had previously refused to register to collect Pennsylvania's 6 percent levy on its orders. But a spokesman said the company reversed itself because a state directive requiring it takes effect Saturday.

"We believe that customers (in Pennsylvania) will continue to come to Amazon because we offer the best prices with or without sales tax," said the spokesman, Scott Stanzel.

The Seattle-based company currently collects sales taxes on orders shipped to six other states - Kansas, Kentucky, North Dakota, New York, Texas, and Washington. It plans to add California to the list on Sept. 15, he said.

Stanzel said Amazon believes questions about the taxation of online purchases should be resolved by federal legislation that uniformly gives states that authority. Two bills are pending in Congress, and he says there appears to be growing support for such a law.

The company has been advising Pennsylvania customers about the change in policy if they inquire about it, Stanzel said.

Amazon's reversal was a victory for the state Revenue Department, which contends that existing law requires online retailers to collect the Pennsylvania tax if they have a physical presence - a warehouse, for example - that creates a "nexus" with the state.

Amazon has six fulfillment centers in Pennsylvania - two apiece in Breinigsville, Lehigh County and Carlisle in Cumberland County, and one each in Luzerne and York counties, Stanzel said.

In December, the Revenue Department issued a bulletin to clarify that certain other activities also trigger tax-collection obligations for online companies, such as employing anyone who regularly travels to the state for any purpose related to their business activities.

The department originally gave companies until Feb. 1 to register or face possible actions ranging from audits to criminal prosecution. Officials later decided that deadline was impractical and pushed it to Sept. 1.

A department spokesman declined to comment on Amazon's decision.

Quote:

We believe that customers (in Pennsylvania) will continue to come to Amazon because we offer the best prices with or without sales tax

There's a dozen other vendors out there I can order from that won't charge tax...what reason do I have to use Amazon any longer?

Ummm, yeah. Here's how I see this playing out:

My "friend" goes to Amazon's website to shop around for a product and then looks at the list of vendors. He then goes directly to the vendor for purchase (providing the vendor doesn't charge sales tax).

Naturally, shipping and all costs need to be factored; but I do see this trend starting to impact Amazon's bottom line. There might be a resurgence in your mom-and-pop online vendors.

Quote:

Amazon has six fulfillment centers in Pennsylvania

Well duh

Amazon should just stop selling to PA and close down their fulfillment centers. This is a slippery slope and can really destroy their business.

I'm expecting to see this Tickered soon.

There is absolutely no way around the nexus.

If you want to sell on the internet with absolutely no state sales tax then you need to operate totally
offshore.

This is a classic Catch 22. If we, the USA, make it difficult to do business online, businesses will just
go elsewhere.

There is no doubt that not collecting sales tax is the main driver for online sales.

Question...Does government protect the instate business that pays ALL fees and taxes or
give a pass to Amazon and others because they promise to provide jobs?

This really should not be that hard to calculate.

There is absolutely no way around the nexus.

If you want to sell on the internet with absolutely no state sales tax then you need to operate totally
offshore.

This is a classic Catch 22. If we, the USA, make it difficult to do business online, businesses will just
go elsewhere.

There is no doubt that not collecting sales tax is the main driver for online sales.

Question...Does government protect the instate business that pays ALL fees and taxes or
gives a pass to Amazon and others because they promise to provide jobs?

This really should not be that hard to calculate.

Quote:

There is absolutely no way around the nexus. If you want to sell on the internet with absolutely no state sales tax then you need to operate totally offshore.

Wrong. You can operate from any of the States with no sales tax. Alaska, Delaware, Montana, New Hampshire, and Oregon come to mind.

-Uwe-

Perhaps Amazon should consider putting in drive thru windows for the locals to come pick up their items. If you have to pay sales tax, at least you could avoid shipping costs in-state.

Right now, I live about 15 miles away from a large Amazon warehouse. Even though things arrive quickly, I pay the same UPS rates as if it were going out of state (unless its a FREE supersaver shipping order, of course).

FWIW, I've never understood how Amazon got away with not collecting sales tax in PA when they clearly had a major physical presence here. If the PA Revenuers were so inclined, I believe PA law would allow them to go after Amazon for at least three years of back sales taxes on all sales here, plus interest and penalties.

-Uwe-

Uwe,

I wondered the same thing, and think it isn't a stretch that going back is in the cards. Not very happy about that.

I doubt they'll come after the individual customers in PA; that would be a LOT of work. Once Amazon is properly registered with the Commonwealth's Dept. of Revenue, it would be far easier to go after Amazon themselves. After all, they are the ones who should have collected those taxes in the first place. I have no idea what Amazon's annual sales in PA have been, but I'd expect 3 years of back sales taxes to add up to BIG bucks and hence a noticeable hit on Amazon's balance sheet.

-Uwe-

i'll just add that unless you have paid every penny of use tax in your state for catalog or online purchases etc, anyone that convicts other people of tax fraud is a class A douche

You are all tax frauds/cheats

Amp...

they are doing something like that:

http://www.amazon.com/gp/help/customer/d....