Amazon warns California against internet sales tax

Tom Barlow — Wed, 24 Jun 2009 11:30:00 EST

Filed under: Internet, Amazon.com (AMZN)

While Washington considers a uniform national sales tax on internet sales, many struggling states aren't waiting, instead pushing forward their own legislation. One of the major companies that stands to lose business from such a tax, Amazon (NASDAQ: AMZN), has begun to send messages to these states threatening to quit doing business with partners based in these states rather than accept the responsibility for collecting and distributing these taxes.

North Carolina and Hawaii have already received such notices. According to the Wall Street Journal linked above, these states are considering new laws that would required companies that have "online marketing affiliates" in the state to collect and return tax to the state. Amazon has thousands of such affiliates, web-based vendors who display links to Amazon products and receive a commission for each sale.

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Amazon warns California against internet sales tax originally appeared on BloggingStocks on Wed, 24 Jun 2009 11:30:00 EST. Please see our terms for use of feeds.

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Taxes on e-mail may not be a hoax, this time

Tom Barlow — Mon, 28 May 2007 16:55:00 EST

Filed under: Products and Services, Law, Internet, Competitive Strategy, eBay (EBAY), Amazon.com (AMZN), Politics

The internet started as Woodstock; relatively anonymous participants free to carry on without fear of apprehension, taxation or repercussion, trusting that others shared their values of respect, reason and cooperation.

As business began to stick its toes into the virtual world, the internet became Bonnaroo; vastly increased content for a bargain price, if you pay the entrance fee, wear your wristband, and don't mind congestion and occasional chaos.

Now, though, the internet has becomes a crucial part of business survival and a tool for predators of all persuasions. So the internet is evolving again, into an olympiad. Everything costs, sponsorships and advertising drive the show, everyone carries verifiable I.D., and every access is carefully monitored.

The U.S. Congress is looking at this issue closely. Their ban on taxing internet access ends in November, an opportunity that temptingly coincides with state revenue shortfalls. The Congress is also once again considering a mandatory nationwide requirement that internet vendors collect sales tax from out of state customers. One senator, according to C/Netnews.com, is even predicting we could see more debate about a tax on e-mail.

I think the internet tax and sales tax measures stand a chance of passing, despite massive consumer protest, because states believe internet shopping robs them of tax revenue and damages their local merchants. Such a measure could have an immediate impact on Amazon.com (NASDAQ:AMZN) and eBay (NASDAQ:EBAY), among others.

The e-mail tax is less likely. In defense of such a tax, however, legislators could refer to a proposal by, among others, Bill Gates, to impose a charge on e-mail as a way of fighting spam. One way or another, the spam issue is coming to a head as it continues to gobble up bandwidth.

Taxes on e-mail may not be a hoax, this time originally appeared on BloggingStocks on Mon, 28 May 2007 16:55:00 EST. Please see our terms for use of feeds.

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