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Amazon Forbids Crossing State Lines With Rented Textbooks

New submitter Galaga88 writes "In what is probably another attempt to evade charging sales tax, Amazon's terms of use through Warehouse Deals forbids crossing state lines with certain rented textbooks. The penalty for doing so? Retroactive forced purchase of the book. At least it's yours to keep afterwards. 'Some experts believe the policy is another reflection of the extreme lengths to which the company continues to go in order to avoid collecting state sales taxes. But could Amazon’s use restriction and other complicated rental conditions cause problems for students or lead potential textbook renters to take their business elsewhere? It seems like a policy that would be nearly impossible to enforce. But Richard Hershman, vice president of government relations at the National Association of College Stores, points out that if a student has textbooks sent to her home state and ships them back from a different state where she attends college, Amazon could easily note the new shipping location.'"

30 of 125 comments (clear)

  1. Covering butt by twotailakitsune · · Score: 4, Informative

    This sounds less like Amazon being evil and trying to hurt people. It sounds like they put that in to cover their butt. They don't have to deal with book makers saying they are "promoting" braking the law.

    1. Re:Covering butt by Xicor · · Score: 4, Interesting

      no, what they are doing is purposely being difficult in order to avoid dealing with ridiculous lawmaking from our government. they are making a statement saying "see, we can be ridiculous too". and the best thing is? it is legal for them to do so. the issue at hand is that for years, the federal law stated that you only pay sales tax if there is a brick and mortar store(or warehouse) in that state. the government has recently been changing it so that the states can charge sales tax even if there isnt a brick and mortar store. this is bad for amazon, and im sure it is worse for amazon than the profit loss from ppl not wanting to rent books from them. the reason they can offer such a cheap price all the time is that they dont have to have sales tax. with taxes, they will lose a huge portion of their profit.

    2. Re:Covering butt by mspohr · · Score: 3, Insightful

      That "ridiculous lawmaking" is state and local governments trying to collect sales taxes.
      This is a whack a mole competition where corporations look for ways to avoid sales taxes and states try to patch up the loopholes.
      The corporations could just step up and acknowledge their civic responsibility to collect and pay sales taxes but they don't... hence the game.

      --
      I don't read your sig. Why are you reading mine?
    3. Re:Covering butt by pixelpusher220 · · Score: 4, Insightful

      the problem is keeping track of tax rates in 3000+ counties plus cities plus other 'special' economic zones.

      It's certainly a doable thing, but it ain't easy, nor is there any mechanism for knowing what is the 'correct' tax to charge at a given point.

      Next up, is it shipping address? Billing address? what if the tax rates are different between them?

      What if the tax rate varies on other factors?

      What if my IP says I'm in Sweden, what then?

      It's not as easy as collect the tax when there are quite a few permutations that don't tell you when they change.

      --
      People in cars cause accidents....accidents in cars cause people :-D
    4. Re:Covering butt by mspohr · · Score: 4, Insightful

      Believe it or not, there are people with computers and databases that track this information and it all can be done automatically.
      You can obfuscate it if you're trying avoid paying tax or you can just pay the tax.

      --
      I don't read your sig. Why are you reading mine?
    5. Re:Covering butt by Sir+or+Madman · · Score: 2

      I find filing my personal income tax exceedingly complicated what with all the possible permutations of credits/deductions/income sources/etc, so perhaps I will just throw my hands up in the air and not bother filing.

      Or can only wealthy corporations skirt the law because things are "too hard"?

    6. Re:Covering butt by Bill_the_Engineer · · Score: 2, Insightful

      the problem is keeping track of tax rates in 3000+ counties plus cities plus other 'special' economic zones.

      This more than manageable and there are already services out there that provide an up-to-date database to their customers. Home Depot, Best Buy, Apple, and others seem to have little trouble calculating the correct sales tax when a customer orders online.

      What if my IP says I'm in Sweden, what then?

      They calculate tax from the shipping address not the IP address.

      --
      These comments are my own and do not necessarily reflect the views or opinions of my employer or colleagues...
    7. Re:Covering butt by pixelpusher220 · · Score: 2

      As I said, doable, just not easy :)

      Home Depot, Best Buy and Apple already know the local tax rates because they have physical presences in those states and already calculate the taxes. Amazon does not have the physical presence that they do.

      I'm all in favor of there being a standardized place and method, but without it, there really is a burden placed on companies trying to do business on the web. Amazon might be able to swing it, but what about the mom & pop store selling on the internet? How exactly do they find out what the tax rates in Lake Wobegon are? :)

      --
      People in cars cause accidents....accidents in cars cause people :-D
    8. Re:Covering butt by makomk · · Score: 4, Interesting

      Believe it or not, there aren't people with computers or databased that track this information. Sales tax regions are geographical constructs don't correspond to particular zip codes or streets or anything useful like that - you can have two houses that are in the same street and zip code but have different sales tax rates. Hell, two halves of the same house can be in different regions with different sales tax rates - try handling that in a sensible way. There's no automated way of mapping from an address to a sales tax region and there's never going to be.

    9. Re:Covering butt by makomk · · Score: 2

      Of course, the service they're offering is actually impossible because you can't determine sales taxes from a normal zip code - there are often multiple sales tax regions within one zip code. I have a feeling you'd get into fairly deep legal shit if you relied on them to calculate sales taxes.

    10. Re:Covering butt by PTBarnum · · Score: 2

      Oddly enough, computers are not typically good at making complex judgement calls, like determining whether or not a given product is "food" under the arcane definitions in various cities, counties, and states. That requires a person to research the product, research the law, and apply the latter to the former.

      Years ago, before Amazon changed to supporting sales taxes, there was an effort by several online retailers to negotiate with states to create a uniform set of taxable categories, so products could be classified once, and only the tax rate would be variable from jurisdiction to jurisdiction. Regrettably, this effort did not succeed.

    11. Re:Covering butt by strength_of_10_men · · Score: 4, Insightful

      Believe it or not, there are indeed companies that do just this.

    12. Re:Covering butt by Attila+Dimedici · · Score: 2

      Why does someone, in this case the shareholders of Amazon, have an obligation (civic responsibility) to collect tax for a government that does not have jurisdiction over where that person is?

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    13. Re:Covering butt by Chaos+Incarnate · · Score: 2

      But it's taxed more granularly that just "food" in many regions. Takeout or eat in? Prepared or not? Cake or biscuit? These questions and more can all affect the tax rate charged on an item.

      --
      Benford's Corollary to Clarke's Law: "Any technology distinguishable from magic is insufficiently advanced."
    14. Re:Covering butt by Rich0 · · Score: 2

      and yet, a lot of people don't blink to pay for a CPA to do their taxes, or just buy turbotax. did you even think this through before posting?

      He said that it is ridiculous that you should have to pay a company in order to file your taxes. You said that people do that all the time without blinking.

      Perhaps you should consider that both of you could be correct. People do ridiculous things all the time, like posting non-sequiturs.

  2. Something Worth Banning by CanHasDIY · · Score: 5, Interesting

    I'm sure I'm not alone in being fed the fuck up with corporations taking control of different aspects of our lives via unilateral contracts. I think it's high time we demand such obligations be banned, thus empowering consumers to at least have a little say in how a contract is worded and executed.

    Unilateral contract == legalized rape entirely too often.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
    1. Re:Something Worth Banning by i+kan+reed · · Score: 2

      Yep, if you give the same contract to every single person you deal with, it's not really a contract, and more of an imposition.

    2. Re:Something Worth Banning by pixelpusher220 · · Score: 2

      Funny, you don't have to agree to the contract. Vote with your wallet.

      This isn't really Amazon, this is crazy tax laws that Amazon is trying to not deal with.

      On the flip side you could just be happy with Amazon raising their prices to cover the sales taxes?

      --
      People in cars cause accidents....accidents in cars cause people :-D
    3. Re:Something Worth Banning by interval1066 · · Score: 2

      I'm sure I'm not alone in being fed the fuck up with corporations taking control of different aspects of our lives via unilateral contracts.

      This isn't a problem with a corp, in this case its state law makers, really. And you're not the first /.'r to miss this. How can so many "consumers" get this wrong?

      --
      Python: 'And then suddenly you have a language which says "we're all stuck with whatever the whiniest coder wants".'
    4. Re:Something Worth Banning by CanHasDIY · · Score: 2

      While I understand that Amazon's actions are in regards to state taxes, that's not what I was talking about - I was referring to the unilateral contract that allows them to dictate to their customers what said customers can or cannot do with the goods/services rendered.

      Sigh... but yea, I'll also point out that this country's taxation system is royally fucked up, if that makes you feel any better.

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
  3. So I graduated and moved by Gr8Apes · · Score: 2

    Seriously, or, I transferred to another college, why does Amazon care? If I rent from a physical location, and haul them myselves, does it matter to whom I rent them from?

    --
    The cesspool just got a check and balance.
  4. Legal term: Contract of Adhesion by rsborg · · Score: 4, Informative

    See here: http://legal-dictionary.thefreedictionary.com/contract+of+adhesion

    adhesion contract (contract of adhesion) n. a contract (often a signed form) so imbalanced in favor of one party over the other that there is a strong implication it was not freely bargained. Example: a rich landlord dealing with a poor tenant who has no choice and must accept all terms of a lease, no matter how restrictive or burdensome, since the tenant cannot afford to move. An adhesion contract can give the little guy the opportunity to claim in court that the contract with the big shot is invalid. This doctrine should be used and applied more often, but the same big guy-little guy inequity may apply in the ability to afford a trial or find and pay a resourceful lawyer.

    In essence, the "lawyer" in this case for students would be a class-action lawyer, and now you understand why major corporations and the wealthy (who, in general control them through stock ownership) hate the idea of class action suits and have done their best to have forced arbitration, banning class actions and the like.

    I'd rather we have class actions that slap down these corporations rather than have these sociopaths-by-design run amok. Call me a socialist if you will.

    --
    Make sure everyone's vote counts: Verified Voting
    1. Re:Legal term: Contract of Adhesion by Mordok-DestroyerOfWo · · Score: 2

      I'm middle-of-the-road when it comes to getting slapped in the face with pizza. I'd still take that over dealings with any lawyer. Bad pizza can make you sick for a few days, a bad lawyer can ruin you financially.

      --
      "Never let your sense of morals prevent you from doing what is right" - Salvor Hardin
  5. Enforcement? by JestersGrind · · Score: 2

    Explain to me how exactly they would enforce this policy? They have no idea where the book goes unless it's RFID tagged or something. You could take the book around the world and they would be none the wiser. Just make sure you return it on time and all is good.

  6. No crossing state lines with textbooks. by Ukab+the+Great · · Score: 4, Funny

    Unless the textbook is 18-years old. Allowances will be made if you're only two or three years younger than the textbook.

  7. Evade, or avoid? by steveha · · Score: 3, Insightful

    To "evade" taxes is illegal. But to "avoid" taxes is legal.

    Even a "tax shelter" that avoids paying 100% of tax might be legal, depending on circumstances.

    There is wide agreement that taxes discourage people from certain behaviors, and tax breaks encourage people to do whatever gives the tax break. So, for example, J. Random Person could invest in solar panels on the roof of his home, and potentially get enough of a tax credit to offset his tax liability.

    Should we be angry that someone paid no taxes? The tax break on solar panels was there to encourage people to invest in solar panels, and J. Random Person did that. This is the system working as intended. Society wanted to encourage more solar panels, and more solar panels were in fact installed.

    Now, consider Amazon. The current weird tax system is the law of the land. (I think a "flat tax" with no exceptions would have many good features, but it's just a fantasy at this point. We are so far from a flat tax that it's really not worth discussing.) If Amazon can do some weird thing like banning interstate use of rented books, and the tax system is currently set up to reward that, then I don't blame Amazon for doing it.

    If you don't like it, maybe you should tell your elected representatives that you would like to see changes in the way sales tax works.

    P.S. I am not claiming that the current sales tax system was intentionally set up to encourage Amazon to take these steps. The tax code is so convoluted now that weird corner-cases must be expected. But whether this was intended or not, if that's what the law encourages Amazon to do, and we don't change the law, we shouldn't be surprised if Amazon does this.

    --
    lf(1): it's like ls(1) but sorts filenames by extension, tersely
  8. So if you have duelling border cities.. by platypusfriend · · Score: 3, Interesting

    So, what then for cases like Portland, Oregon and Vancouver, Washington? They both are reasonably sized cities which border each other on a state line, effectively creating a single metropolitan area. Many sleep in Vancouver, yet live their lives in Portland; and, of course, vice versa.

  9. Sorry, that's bullshit by tlambert · · Score: 3

    That "ridiculous lawmaking" is state and local governments trying to collect sales taxes.

    No, that's state and local governments trying to coerce corporations into collecting sales tax for them, when there is already a use tax law, and it's the state and local governments job to do the collecting.

  10. Re:What about a federal VAT on internet sales? by marka63 · · Score: 2

    As a retailer you get charged VAT by your wholesaler and you charge VAT to your customer. The difference goes to / returned from the government.

    So something that ends up being tax exempt as a retailer you recover whatever VAT you were charged on the product. Schools are often tax exempt but you buy from the wholesaler as if you are selling to the public.

    If you sell at a loss you recover the VAT you lost.

  11. Re:What about a federal VAT on internet sales? by Smauler · · Score: 2

    In the UK businesses claim back VAT they have spent at the end of the year. This does add a metric crapload of paperwork throughout the year for all the stuff you need to claim back on. The advantage of VAT over sales tax is that it is harder to avoid, in theory.