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Originally Posted by RIROCKHOUND
So... Am I understanding it correctly?
Amazon doesn't want to pay the same internet based sales tax that they are supposed to pay, and that a mom and pop online book store in the same state would have to pay? Or am I missing something...
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There technically is no "internet based sales tax" that any company is supposed to pay.
Amazon doesn't actually operate any store fronts in any state. The laws that are being passed (the SC one is a little different) are declaring the affiliates - typically individuals like myself - who advertise their products as "Agents" of the company and saying that those "Agents" mean that Amazon is required to collect state sales tax on internet sales.
In SC, the law (if I'm reading it correctly) is declaring that Amazon's distribution warehouse is evidence that the company operates within state boundaries and should therefore be required to pay the tax. However, you would still have to purchase through the website.
I always come back to the Staples.com case... because they own stores in every state, they have a defined presence and are required to collect sales tax on internet sales just as they would if someone walked into the store. Amazon does not have any physical stores that you can walk into.
These laws have been called "Amazon.com Tax Laws" because they very specifically target Amazon.com's operations and their business model.
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Kind of like if Saltwater Edge had to pay more in taxes on internet orders than say BPS or Cabelas?
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Saltwater Edge isn't paying any tax that BPS or Cabelas is able to avoid. SWE *collects* sales tax from the consumer and then is required to make quarterly Sales Tax payments to their state government.