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California Senate Approves Net Tax Bill

Posted by timothy on from the taxation-taxation-taxation dept.

Grant Erickson points to this internet.com story, which says "On Thursday, the California state Senate approved a bill that requires businesses with stores in the state to charge their customers sales tax for purchases made over the Internet." The state's huge ($35 billion) budget deficit is named as a driving force for the measure.

5 of 536 comments (clear)

  1. That is the sound of inevitability.... by dtolton · · Score: 5, Interesting

    Unfortunately this is something we've all known has been a long
    time in coming. When it comes to the government and collecting
    "their" money, they won't let any opportunity pass them by.

    It will be interesting to see how this will impact online
    retailing though. Not having to pay sales tax has been helpful
    to sites like Amazon for keeping their costs lower than brick
    and mortar stores. Although I think many people don't figure
    the cost of sales tax into the purchase of an item as frequently
    as they should (I know I don't), so it may not have that large
    of an effect.

    One interesting sales tax law in my home state (Utah) is that if
    you buy something from a state that doesn't have sales tax
    (Oregon) then you have to pay sales tax to Utah. Just one of
    the lovely little "bend over and grab your ankles" type of laws
    on the books. I'm hopeful they won't enact the same type of law
    for internet commerce, but I don't have much hope.

    --

    Doug Tolton

    "The destruction of a value which is, will not bring value to that which isn't." -John Galt
    1. Re:That is the sound of inevitability.... by Arcturax · · Score: 4, Interesting

      Same with Ohio, you have to declare everything you buy online. But you know what? I don't know anyone who has ever done that.

      --

      --Won't that be grand? Computers and the programs will start thinking and the people will stop. - Dr. Walter Gibbs
  2. What would be cheaper... by Gannoc · · Score: 4, Interesting


    Integrating a system to charge, process and report state taxes, and losing business due to your higher prices,

    OR:

    Moving away from california.

  3. Tax Fast Food by aSiTiC · · Score: 4, Interesting

    I heard a story here in Oregon on the local news that the Oregon legislator is discussing a tax on fast food. I agree with this kind of tax that same way I agree with taxes on cigarettes and liquor. The state ends up paying for health care for obesity, lung cancer and liver problems.

    However, I think that this internet tax does not have the same kind of reasoning. The internet is bringing revenue in for the state and now the state is trying to find a way to make more money.

    --

    Where the Music Matters

  4. Re:moving on out? by Flounder · · Score: 4, Interesting

    Barnes and Noble (the B&M book stores) and BN.com (the web site) are indeed separate and distinct companies. I wonder how this ruling will affect them.

    --

    No boom today. Boom tomorrow. There's always a boom tomorrow. - Cmdr. Susan Ivanova