DD, my total is a little over $200.00.
Regular
DD, my total is a little over $200.00.
~Wife, Mom of 8 with 7 still living at home.
FIAR Mentor
The TN thing {as I understand it..} is because Amazon isn't charging a tax BECAUSE it's not an enforced law yet. All businesses have to charge a sales tax, and little businesses think it's only fair that Amazon should have to charge people one too. Their theory is they can't compete with Amazon, especially if they don't charge tax.
I think if it were enforced Amazon would instantly be tallying up the tax, but because it's not they don't. According to a couple of articles I read last night {I still have a TN billing address & a shipping address so I was wondering how much would effect me} Amazon isn't reporting back to the IRS to tell them who is or isn't paying that money.
Which sounded to me, that despite the fact that the IRS wanted it's monies, you wouldn't be paying them, you'd be paying Amazon. Now, my guess is, that Amazon will take whatever they collect & send it onward. There will be those will feel compelled to pay up & move on just incase it gets heavily enforced, kwim? In the mean time, until it is enforced Amazon isn't saying or doing anything more then sending out the emails.
I'm actually shocked, though, that Amazon isn't automatically having it charge sales tax for customers in TN {or SC} if it's law that they are suppose to.
Kendra {FIAR Mentor}, wife of Lawrence, mother of three.
I would be most content if my children grew up to be the kind of people who think decorating consists mostly of building enough bookshelves.
Newbie
NY had a big go around with Amazon a few years ago, and it resulted in Amazn collecting the tax. Like other states, we were supposed to pay it anyway, but something changed that led to Amazon collecting it. I notice they don't add sales tax for items sold by third-parties (not used items).Originally Posted by Heather W
FIAR Community Manager
It was a big hullabaloo last year, Kendra, when Gov Haslam made the deal that they could come here and still remain "tax free." A lot of other businesses were up in arms that Amazon was going to be exempt from charging tax since that would give them an unfair leg up in sales.
Melissa, Five in a Row Mentor
Robert's my man. Jacob, 10, and Mattie, 6, entertain me and keep me on my knees!
"Once your enemy, now seated at your table. Jesus, thank you!" ~ Sovereign Grace Music
Member
It was my understanding that Amazon will start charging it like regular when they hit a certain year. THe agreement they made in order to open the distribution centers in TN was that they wouldn't have to charge sales tax for the first couple of years. After that, then they would start collecting it from TN residents.
Not sure what it ended up as.
Karen in Tn
Veteran
Ok- more tax law than anyone wants to know, with a little states' rights thrown in...
The federal government does not charge a sales or use tax so the money isn't being collected on behalf of or by the IRS. Individual states and municipalities charge varying sales taxes on sales within their jurisdiction. Retail vendors within the individual state jurisdiction are required by law to collect and then forward this amount to the state.
Traditionally for a state to have jurisdiction over a person or entity for legal enforcement puposes, the person or entity must have a link to the state- usually a physical link of some sort. That's why you see folks often needing to "reside" in a state for a certain amount of time before getting a divorce or marrying, and why custody disputes crossing state lines are so complicated. This is one of the key differences between a state law and a federal one and why "crossing state lines" during a crime is often noted.
For a businesses this has meant that a company that had no physical presence in a state would not collect the state's sales tax because the state no jurisdiction over the entity to enforce it's collect and remit laws. The states of course have argued that the act of mailing a catalog or the actual item, as well as using phone lines, etc. to communicate are a presence but they have not won this argument in court.
So, businesses like Amazon can sell to people all over the country, and only have to collect sales tax in states where they have a physical presence like a call center or a warehouse. The tax is still owed, but the state has no legal ability to force Amazon to collect it. Thus it falls to the individual citizen to report and pay.
What we have seen in the past year is a change in the wording of state law, negotiated settlements between various states and Amazon and other efforts to begin collecting these amounts. From a consumer point of view it looks like something free is being taken away. From a small local business point of view it is more of a levelling of the playing field as they don't have the option of not collecting the tax and instead telling their customers to be sure and pay the use tax on their purchases.
Last edited by TonyaP; 04-26-2012 at 10:07 PM.
Blessed to be Home With The Kids
Logan (12), Hannah (9), Aaron (7), (Little One Eternally Home 2007), (Liam 3)
FIAR Mentor
Ugh, I had no idea they now had a warehouse there.We don't generally shop from Amazon because Book Depository gives us free shipping {they have a warehouse or two in the US too as well as the UK}, BUT I just recently made a rather large purchase from there. Wonder if we'll end up with a letter then.
I did notice last time I bought an ebook it came to more then it should have. Hmm, so are they now charging the tax on everything or just the digital stuff? How confusing, & honestly it seems exceedingly greedy! Especially for Shauna, did I read that right? You pay twice?!?!
Kendra {FIAR Mentor}, wife of Lawrence, mother of three.
I would be most content if my children grew up to be the kind of people who think decorating consists mostly of building enough bookshelves.
Veteran
The use tax applies to online and other out-of-state purchases from retailers that did not collect the state's base sales tax, so residents are not paying use tax twice in theory. I think there is overlap, though, because if you don't know how much tax you owe on online purchases that collected no sales tax, you're supposed to use a chart to estimate use tax owed based on your reported income. They'll get you one way or the other and if you don't keep track, you could end up paying the sales tax twice.Ugh, I had no idea they now had a warehouse there.
I did notice last time I bought an ebook it came to more then it should have. Hmm, so are they now charging the tax on everything or just the digital stuff? How confusing, & honestly it seems exceedingly greedy! Especially for Shauna, did I read that right? You pay twice?!?!
~Shauna~
Afterschooling DD11 and DD7
Member
Here's an article: http://timesfreepress.com/news/2012/...ces-tennessee/
Member
What I'm not getting as a TN resident is what I am supposed to do with this information.
THey sent me my notice after my 2011 was already done and sent. So is this for 2012?
Karen in Tn
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