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Supreme Court ruling lets states collect sales tax from online purchases
It's not unheard of for internet retailers to collect sales tax regardless of where their customers are located, but they might not have much choice before long. The US Supreme Court has ruled that states can force online stores to collect sales tax, reversing a 1992 precedent that let companies avoid sales tax when they didn't have a physical presence. South Dakota (with the support of 41 other states, two territories and DC) had taken action against Newegg, Overstock and Wayfair after enacting a tax collection law in 2016, arguing that the presence rule was "arbitrary." The state put enforcement of the law on hold until it could definitively establish that it was constitutional.
Jon Fingas06.21.2018
Amazon will collect state sales taxes nationwide April 1st
While Amazon has resisted collecting state sales taxes, over the last few years it has bent, state by state. Now CNBC reports that as of April 1st, it will collect sales taxes in every state that imposes one, as Hawaii, Idaho, Maine and New Mexico join the list. Even if Amazon (or another online retailer) doesn't collect sales tax, consumers may be on the hook to pay via a "use tax." For companies like Amazon, however, bringing warehouses, services and data centers closer to where customers live has closed the loophole, and they've begun collecting the tax on their end. Between the taxes and universal pricing policies, the gap between Amazon and local retailers (big box or small) is getting closer. Of course, the convenience of Amazon Prime and the addition of other services (Fresh, Local, etc.) may keep things tipped in its favor.
Richard Lawler03.24.2017
Google goes after Pixel resellers by locking their accounts
Google has taken severe measures against Pixel buyers who violated its terms of service. Around 200 people purchased the phones via Project Fi and shipped them directly to a reseller in sales tax-free state New Hampshire, according to bargain-hunting site Dan's Deals. The phones were then resold to others, and the small profit split with the buyers. However, Google's terms dictate that buyers may not "commercially resell" any device and it locked their accounts, denying access to photos, emails and other personal data.
Steve Dent11.17.2016
Engadget Daily: HP's super-slim laptop, the fight over online sales tax, and more!
HP's newest laptop, the EliteBook Folio 1020, is thinner than a Macbook Air, super sexy and tough enough to meet military ruggedness standards. The only problem? You'll have to wait until 2015 to snag one. Read on for the rest of our news highlights from the last 24 hours, including Intel's collaboration with SwiftKey, a fitness-tracking compression shirt and the deal with online sales tax.
Andy Bowen12.02.2014
The fight over online sales tax and how it impacts you
For over 20 years, the internet has made purchases easier than ever in human history. With one-click buying and free-shipping programs, people have flocked online to buy nearly a quarter of a trillion dollars of stuff per year. Many of those transactions happen without the burden of sales tax, making online shopping not just convenient, but also cost-efficient. That may all be about to change.
Julian Murdoch12.02.2014
Apple promotes tax-free shopping days
Apple on Monday began reminding folks that a number of states are holding sales tax holidays beginning on August 2nd. As the name implies, sales tax holidays enable consumers to purchase certain types of items and forgo having to pay sales tax. Come early August, 10 different states will hold sales tax holidays for varying lengths of time wherein certain Apple products will qualify.. The states where deals can be had include Alabama, Florida, Georgia, Louisiana, Missouri, New Mexico, Massachusetts, North Carolina, South Carolina, and Tennessee. Note that every state has its tax holiday begin on a different date, so make sure to check out Apple's website for more details. Further, keep in mind not every item under the sun qualifies for the holiday sales tax exemption. You see, the intent of the sales tax holiday is to help subsidize back to school shopping, which is why computers in some states are included. So unfortunately, that big screen TV you've been eyeing at Best Buy doesn't qualify, which is a shame because there really is a lot of educational programming out there these days. Kidding aside, it's worth noting that the sales tax exemption can be applied on top of Apple's current back to school promotion. Also note, per Apple's informational page, that when you purchase a qualified item from Apple's online retail store, the normally applicable sales tax will show up in your shopping cart. The "correct no-tax amount", however, will be evident upon receipt of your email purchase confirmation.
Yoni Heisler07.31.2013
US Senate passes internet sales tax bill, faces a stiff fight in House
The debate over taxing out-of-state online sales in the US has been raging for years, but there are signs that the often messy saga is finally winding to a close... well, maybe. The Senate just voted 69-27 in favor of the Marketplace Fairness Act, a bill that would make internet retailers collect out-of-state sales taxes that Americans are already obligated to pay, but rarely do under a current system that puts the onus on (frequently unaware) buyers. Don't be too hasty in cheering or jeering the apparent conclusion, however. The bill's next stop is the House of Representatives, and the reception may be decidedly colder this time around. The act could be submitted to the President this year if it does survive the gauntlet, although a six-month buffer would likely push any tax changes to 2014 if the bill is ever signed into law. [Image credit: Scrumshus, Wikipedia]
Jon Fingas05.07.2013
Amazon to start collecting sales tax in New Jersey beginning July of next year
Taxes. Taxes. Taxes. That's what you folks living within the Garden State will have to pay on Amazon purchases starting July 2013. The recent news -- which is likely to cause some of you to throw a minor temper tantrum -- comes shortly after Jeff Bezos & Co. settled with the Texas government to also begin collecting sales tax in that state. Similar to the Lone Star deal, though, Amazon's agreed to create about 1,500 full-time jobs by building a couple of distribution centers in New Jersey -- and let's face it, job creation is always good news. Sorry, but looks like the Jersey Shore crew will have to spend a couple extra bucks the next time they place an order for that weekly stock of tanning lotion.
Edgar Alvarez05.31.2012
Amazon to collect sales tax, create 2,500 jobs in Texas
If Amazon's been your internet safe haven from the ravages of sales tax, you may want to sit down. As part of a settlement with the great state of Texas, Bezos' baby will start collecting the state's requisite 6.25-percent sales tax on July 1st. The settlement resolves the online retailer's ongoing dispute with the Lone Star state, which claimed that Amazon owed $269 million in back taxes. In addition to taking up collection, Amazon has agreed to create at least 2,500 jobs and invest a minimum of $200 million in capital investments, though it admits no fault, and believes "the assessment was without merit," according to its latest SEC filing. Grouped in with Kansas, Kentucky, New York, North Dakota and Washington, this agreement makes Texas the sixth state to collect sales tax from Amazon -- and California, Nevada and Arizona will join the collection club in due time. Check out the source links below for the Texas Comptroller's official statement and more reading on Amazon's tax agreements across the nation.
Sean Buckley04.30.2012
Dear Aunt TUAW: Why is my iPhone sales tax so high?
Dear Aunt TUAW, I tried over 40 times throughout the day to order from the Apple Store. Then in the evening here in California, I succeeded. The screen said shipping by June 24th. In the confirmation email the next morning, the delivery is now July 6-8! Also, here in California the sales tax is on the unbundled [unsubsidized] price, even though I qualified for the $299 upgrade. The tax is $57.67, which is based on the $599 price. So, I am paying almost 20 percent in taxes. Does that mean that for everything I buy here in California I will pay taxes on the highest price the manufacturer can charge?!? Then why buy something on sale if the state government eats up the savings in taxes. I am really steamed about this! Your disgruntled nephew, Z.
Erica Sadun06.16.2010