Re: Amazon, Overstock, Lose Round One Against NY Online Tax Law

MiriamBertram — Thu, 22 Jan 2009 15:06:44 -0000

The state of California directs its attention to the buyer, not the vendor.

During the Great Depression, a 'use tax' was enacted. All purchases made outside the state are to be reported on our income tax forms and we are supposed to pay the applicable sales tax. This applies to individuals as well as businesses. It has mostly been ignored and few people even know of it.

However, given our current deficit, the State Franchise Tax Board is taking a new, aggressive approach. They are sending to small businesses demand letters that they calculate and pay their use tax for the past three years. And they have to pay penalties and interest. Non-compliance can result in an extensive audit.

http://jan.freedomblogging....

Re: Amazon, Overstock, Lose Round One Against NY Online Tax Law

MiriamBertram — Thu, 22 Jan 2009 14:59:15 -0000

In California, the State Franchise Tax Board has taken a different approach. We have a 'use' tax that targets the buyer, not the vendor. This has been a law since 1935 and is related to the Great Depression. The stated goal was to put California retailers on the same level as states without a sales tax, so residents would not purchase in Oregon, for example, instead of buying in California. Until recently, it has been mostly ignored.

The state is now taking action and sending bills to small business owners with an estimated amount due and payment demand. Pretty frightening. See the attached article.

http://jan.freedomblogging....

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Re: Amazon, Overstock, Lose Round One Against NY Online Tax Law

Re: Amazon, Overstock, Lose Round One Against NY Online Tax Law