Amazon fights taxes

"Landep News"

Amazon fights taxes

Amazon is the biggest supporter of a referendum because it’s against California’s new sales tax law which is going to affect its sales.

The current economic situation has determined many American states to try and find new sources of income. The solution was to collect sales tax from the affiliates of e-tailers and especially of Amazon. Like it was expected, Amazon as well as other e-tailers considers the measure to be unfair, because they shouldn’t be obliged to pay sales tax as long as they aren’t present in the state. This is a situation that has been up for debate for a while now, but the importance of a decision has been accentuated by the current budgetary troubles that most American states are facing.

For Amazon, this new sales tax law is a big concern, because with the help of affiliate marketing, the company manages to obtain incremental sales. But the entire situation has gone beyond debate, because the state of California has actually requested Amazon to pay its sales tax. Amazon’s response involved shutting off all its affiliates. The answer wasn’t satisfactory for the state which thinks it is entitled to receive the sales tax accumulated before the affiliates were shut off. Amazon’s response remained the same and they completely refused to pay any money.

Instead, Amazon has started to think about a way that will allow it to change the new Californian law. The main tool at its disposal and also legal is a referendum. And they are entitled to, because this time justice is on their side. It is stipulated in the law and in the constitutional jurisprudence that no company such as Amazon can be obliged to collect sales tax in a state where none of its nexuses exists. In addition, Amazon is the supporter of a solution established at federal level and known as the Streamlined Sales Tax Initiative. This measure is supported by 40 American states.

Many also see this Californian new sales tax law as an attempt of huge competitors such as Wal-Mart to disadvantage Amazon which is taking over a big chunk of the market they are fighting for. Who knows? What’s important is that Amazon will not give up without a fight.

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