cancel
Showing results for 
Search instead for 
Did you mean: 
Jim Meade / Iowa City
Senior Advisor

Illinois SC Invalidates "Amazon" Sales Tax Law

Numerous onlien references cite today's Illinois Supreme Court decision that just because a firm has a local presence does not mean it has to charge sales tax on onlne purchases.

 

In Iowa, local option sales taxes mean that from county to township to town to city there may be difference sales taxes.  I don't know how Amazon or Northern Tool or Grainger could know what tax to charge me at my address.  I have had occasions when they charged the highest local rate!

 

Both sides have decidd to take the question to the U.S. Supreme Court, if it will accept it.  There is nothing to say that the Illinois dcision will be followed by any other state ,but one wonders if the qustion will come up in other states, as well.

0 Kudos
6 Replies
Kay/NC
Honored Advisor

Re: Illinois SC Invalidates "Amazon" Sales Tax Law

It has bern a question in both Va and NC, I am sure. NC's former governor, Bev Perdue, tried endlessly to gain access to information of what citizens were actually ordering from a,azon, and the company fought it tooth and nail, om the grounds of privacy. She got bootd by the state Democratic party, so Obama had a prayer here in 20012, and i think it has been dropped along with her. Anyway, amazon is not yet collecting online sales tax for NC.

I wish we could give up income tax, and pay a national sales tax. Yes, I know that is seen as regressive, but everyone needs to foot some of the bill for the peivilege of being an American.
0 Kudos
Kay/NC
Honored Advisor

Re: Illinois SC Invalidates "Amazon" Sales Tax Law

New question: Sales tax has normally been levied on items sold within an area, say a state sales tax applied for all stores in the state. Then, states started charging for catalog sales...I guess if there were stires in those states, with the option for in-store pickup, often to get free shipping, that could make arguable sense.

What happens when I order from my mobile device, while traveling between states?

There is no retail outlet in either one. I can opt for delivery in either one, and could choose to take packages where no or significantly less sales tax is charged, would do so, most likely.

Other than use of the highways FedEx and UPS, which is covered by revenues gained via other avenues, like taxing commercial freight vehicles and fuel taxes, what is my commerce costing the state?
0 Kudos
wt51015
Senior Contributor

Re: Illinois SC Invalidates "Amazon" Sales Tax Law

I'm afraid those of us in the square states would be paying a higher percentage sales tax than under the current state sales tax. There has been so much federal money ponied up for infrastructure that I'm sure many farmers would balk at paying for now. I still see the potential for many people for buying many things in foreign countries and smuggling them in so what's the difference between that and playing with the numbers on income tax once a year?

0 Kudos
Kay/NC
Honored Advisor

Re: Illinois SC Invalidates "Amazon" Sales Tax Law

To me, the main difference is that everyone pays sales tax when they spend money, with possible exemptions for medications and reductions for items like food.  Current estimates are the 46 percent of Americans pay no income tax at all, meaning they have no skin in the game.   

0 Kudos
wt510151
Senior Contributor

Re: Illinois SC Invalidates "Amazon" Sales Tax Law

Watch this and it's not just the poor that doesn't have skin in the game. http://www.utrend.tv/v/9-out-of-10-americans-are-completely-wrong-about-this-mind-blowing-fact/

 

Worst part is many of those 46% actually do, by joining the armed forces to pay for college they really are physically skin in the game.

0 Kudos
kraft-t
Senior Advisor

Re: Illinois SC Invalidates "Amazon" Sales Tax Law

Meaning that they don't earn enough money?  I have the notion that there are far to many avoiding taxes that can afford it. Both business and individuals. If we intend to tax income then we should try to tax all of it. Capital gains income is no more precious than a dollar earned by our wits or the sweat of our brow.

 

The guys spreading hog manure ought to pay  a lower tax rate than Mitt Romney. The problem is not Mitt Romney but the tax code that was created for folks like him

0 Kudos