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Amazon Prevails In State Sales Tax Dispute, Thus Far

snsh writes "A US judge has ruled for Amazon.com (PDF) against North Carolina's request to turn over the names of its customers to state tax officials. The ruling was focused on privacy grounds, so the state can still re-request less detailed sales data which does not identify items purchased." Reader arbitraryaardvark adds a link to The Volokh Conspiracy's take on the decision.

15 of 171 comments (clear)

  1. Good for us Sellers by commodore64_love · · Score: 3, Insightful

    The outcome of this case affects not just Amazon, but also its sellers.

    "No taxation without representation" is the principle. Why should I be subject to taxation by a foreign government (Carolina) when I have no voice in their legislature? It makes as little sense as saying a Frenchman should have to pay income tax to the Polish government. My allegiance is to MD and US..... any other governments have zero authority over me.

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    1. Re:Good for us Sellers by Zironic · · Score: 4, Insightful

      Sure they don't have any authority over you (unless your government says they do and extradites your ass) but they do have authority over anything you do in their territory, like transferring goods.

    2. Re:Good for us Sellers by cowboy76Spain · · Score: 4, Insightful

      The outcome of this case affects not just Amazon, but also its sellers.

      "No taxation without representation" is the principle. Why should I be subject to taxation by a foreign government (Carolina) when I have no voice in their legislature? It makes as little sense as saying a Frenchman should have to pay income tax to the Polish government. My allegiance is to MD and US..... any other governments have zero authority over me.

      Nonsense.

      The taxes are paid by the customers, not by the sellers. As the customers reside (and purchase) in the state, they must pay.

      Notice also that TFS does not say anything like that... it just says that the state has no right to know if someone bought "Alice in Wonderland" or "How to make home bombs" or "Meth cooking for dummies". I think it is a good point to defend, but the issue of taxation itself has not been reviewed, as it is emphasized in the summary.

      Also, I'd like to play a little with your "No taxation without representation". Are you suggesting that when a convinted felon loses his/her right to vote, s/he also loses his/her duty to pay taxes? Maybe crime pays, after all.

      So... any comments other than "I do not like to pay taxes"?

      --
      Why can't /. have a rich-text editor? Editing your own HTML is so XXth century.
    3. Re:Good for us Sellers by RivenAleem · · Score: 5, Funny

      I think I speak for all foreigners when I say that America is already very taxing.

    4. Re:Good for us Sellers by redhog · · Score: 5, Insightful

      Why should convicted felons lose the right to vote? What really is the point? Once the sentence is served, the convict should be considered a free man again, with the same rights and responsibilities. If that is deemed inappropriate, he should still be in prison. Why have second class citizenship?

      --
      --The knowledge that you are an idiot, is what distinguishes you from one.
    5. Re:Good for us Sellers by nosferatu1001 · · Score: 4, Interesting

      Agreed. One of the more bizarre laws the US has that seems certain to incite continual negaitve feelings towards a government you can never participate in.

      Utterly stupid

    6. Re:Good for us Sellers by mysidia · · Score: 5, Informative

      like transferring goods.

      Conducting business transactions and transferring goods to someone out of state is called interstate commerce. And the supreme law of the land says that the power to regulate interstate commerce belongs exclusively to the US congress, and specifically indicates that states do not have the power to lay tarrifs, duties, imposts, or otherwise tax imports.

      In other words.. no... the foreign state doesn't have authority or power to regulate you transferring goods into their state; that authority has been explicitly reserved for the feds.

    7. Re:Good for us Sellers by nedlohs · · Score: 4, Informative

      No, since you put all those purchases on your state income tax return and paid use tax on them at the appropriate rate it won't affect you at all.

    8. Re:Good for us Sellers by mcgrew · · Score: 3, Informative

      English motherfucker. Learn it.

      LOL, you just called him an "English motherfucker."

      Mr. pot, meet mister kettle.

    9. Re:Good for us Sellers by Chibi+Merrow · · Score: 4, Interesting

      I live in a state where it's perfectly legal to sell someone an AK-47 at a gun show without even checking their ID

      Which is a bald-faced lie. Fully automatic weapons require a Federal Firearms License, which overrides any more permissive state law regarding them.

      Unless you're referring to a semi-automatic rifle that shares parts with an AK-47? If so, then why should you have to show an ID?

      --
      Maxim: People cannot follow directions.
      Increases in truth directly with the length of time spent explaining them
    10. Re:Good for us Sellers by DigitalSorceress · · Score: 5, Interesting

      Absolutely.

      I host an online store for a friend - she used to set up booths at conventions and such but due to health reasons, she is now completely online. (used to do mail order too as it was a niche product, but nobody does mail order anymore). She's having enough trouble just complying with PCI standards. She freaked out when she first saw the questionnaires and I had to spend quite a bit of time going through it and explaining what was meant and spent a lot of time tweaking server and application to meet the PCI standard (it asks for mostly common sense stuff, but is worded with some absolutes that mean that a technically secure compensating measure doesn't qualify you to answer YES/NO to a given question, but I digress)

      The point is that she's a friend and I essentially put in quite a few billable hours pro-bono. However, PCI compliance was a walk in the park compared to what we'd have to do should she be required to deal with all those tax jurisdictions you mentioned. She would not be able to afford it with her sales and I'm at my limit (even with a friend) for how much time I'm willing/able to give away.

      I custom wrote her shopping cart and checkout system, and before anyone says it, at the time I wrote it, there was NOTHING available on the market that met her needs and she could afford.
        YES we could probably rebuild her site using something commercial or FOSS today, but she still can't afford what it would cost to do the conversion. In my opinion, such a complex mess of tax jurisdictions would force mom and pop type places offline or force them to pay big vendors for their carts/checkouts.

      That might not seem like the end of the world, but it feels like yet another barrier to entry... over time, the more regulatory and statutory hurdles businesses and individuals have to negotiate in order to go online will destroy a lot of the freedom and openness that made the Internet so fertile a place for speech and innovation in the first place.

      --

      The Digital Sorceress
  2. Re:Wait! Don't tech companies love Big Brother? by Chaos+Incarnate · · Score: 5, Interesting

    There's a difference between seeking to avoid paying their taxes (finding shelters, etc. like Google), and refusing to help the state violate the interstate commerce clause (like Amazon is doing here).

    --
    Benford's Corollary to Clarke's Law: "Any technology distinguishable from magic is insufficiently advanced."
  3. Huh.. by EasyTarget · · Score: 4, Interesting

    I must be mis-reading this..

    As far as I can tell, all that has been ruled is that the state should not receive a lit of -what- books you have purchased.

    Nothing to prevent them knowing the value of the books you have purchased, with the titles redacted, so you can pay your fair share of taxes like the rest of us.

    Yet people here seem to be discussing things off at a tangent to this (like whether books should be taxed at all, a totally different subject really), who would have imagined Slashdotters doing that ;-)

    --
    "Oops, I always forget the purpose of competition is to divide people into winners and losers." - Hobbes
  4. A Little More Complicated Than That... by ideonexus · · Score: 3, Interesting

    You are correct that things have gotten off topic, and a lot of people are missing what's actually going on here; however, it's not as simple as giving purchases with titles redacted...

    Amazon is being sued to pay the taxes for purchases in North Carolina, not for everyone in America. They furnished NC's Department of Revenue (DOR) a list of all sales with ASINs (Amazon's Unique Identifier for products) from 2003 - 2010. NC needs the details because different kinds of products have different sales taxes. NC's DOR demanded that Amazon also provide the Bill-To and Ship-To information, which Amazon refused to do as this would violate the First Amendment by identifying the details of what NC residents were reading, watching, and listening to.

    This is where it gets hazy... The DOR offered to give the original data back in exchange for data that identified people, but not the details of what they purchased, but the original data would be kept on the DOR Secretary's computer, because they needed some of that for... I dunno, it's hazy legalese. Amazon stated that the only way they have to identify what was purchased was ASINs, which would identify the products, so no deal.

    The DOR admitted that this customer-identifying data would add nothing to establishing Amazon's tax-liability, but they still wanted it. Amazon got backing by the ACLU and the Judge ruled against the DOR.

    This should be case-closed, but, as a resident of North Carolina, I'll be keeping an eye on it, and will be writing an irate letter to the editor of my local paper for not covering this story. Thanks Slashdot!

    --
    i ~ Celebrating Science, Cyberspace, Speculation
    1. Re:A Little More Complicated Than That... by spidrw · · Score: 3, Informative

      Amazon isn't being asked to pay taxes at all. NC would certainly prefer that Amazon collect and pay them, but what NC wants is purchase details so that they can send tax bills to NC residents (you and me) for un-paid use taxes. Amazon has no NC tax liability - we do.