Amazon tax notice

[10-Ring]

I just got a notice from Amazon via email informing me of how much money I had spent with them in 2012 so that I could pay taxes on it.  I like using Amazon because it is convenient and often cheaper than going to the store anyway so I certainly don't mind paying taxes on the items that I purchased. 

 

I am a little confused though.  I understand by law that if a retailer has a brick and mortar store in your state then you have to pay taxes on mail order purchases.  How does this apply to Amazon purchases?  I am aware that they have fulfillment centers in TN but it isn't like you can walk into one and purchase items.  

[Garufa]

Amazon made a deal with the state last year to start sending out those messages.  They will actually begin collecting sales tax on purchases by TN residents Jan 1, 2014.

Edited January 24, 2013 by Garufa

[garethsk]

Amazon built a fulfillment center in Chattanooga I believe. I've gotten a few items from there already.

[enfield]

Charleston, TN in northern Bradley County.  It's fairly close to Chattanooga.

[Will H]

I got a notice like that.  The notice also said that the amount spent was not reported to the state............  Just sayin.

[monkeylizard]

I understand by law that if a retailer has a brick and mortar store in your state then you have to pay taxes on mail order purchases.  How does this apply to Amazon purchases?  I am aware that they have fulfillment centers in TN but it isn't like you can walk into one and purchase items.  

 

 

If a vendor has a physical presence (store, office, warehouse, etc.) in a state, they have to collect the sales tax from any buyer in that same state on behalf of the state and send it in. When you buy on the Interwebz/Mail Order from out of state, you still owe sales tax to your own state, but the vendor isn't required to collect it from you. You're supposed to fill out a form and send in the sales tax yourself. Shopping on line is often seen as tax free when It's actually tax evasion.

 

The deal Amazon made with TN delayed them collecting the sales tax until 2014, but they have to send out the form you saw in the meantime so that you can pay the tax to the state directly. That's something on-line shoppers should have been doing all along, but almost nobody does it. I suspect the state's thinking was that the form might prompt people to pay the tax out of fear that someone's watching. Collecting even a small part of what's owed is better than collecting nothing.

Edited January 24, 2013 by monkeylizard

[scoutfsu]

It's a use tax. You're supposed to pay that for anything you buy on the Internet thats not already taxed.

[jhc77]

Got one too. Are they going to try and find me if I don't pay $3.96 in tax? I checked the link on the email. The state site is also going to charge you a fee (2.49%) for using a card to pay the tax.

[TMF]

Yeah, I'll get right on that.

[Guest cardcutter]

Amazon built a fulfillment center in Chattanooga I believe. I've gotten a few items from there already.

 

 

Charleston, TN in northern Bradley County.  It's fairly close to Chattanooga.

 You are both right. there is one in each of those places and talk of building more in west TN.

[Woody]

Yeah, I'll get right on that.

Me too.....lol

[scoutfsu]

In Washington, the state was having FFL's collect the use tax on transfers. :down:

[NoBanStan]

I love the whole part about "we don't actually tell the state of TN how much you've spent... but we're going to CYA and let you know, thus removing us from obligation."

[Garufa]

 You are both right. there is one in each of those places and talk of building more in west TN.

 

There are ones in Lebanon and Murfreesboro as well.

[JWC]

[quote name="Garufa" post="894621" timestamp="1359040729"]There are ones in Lebanon and Murfreesboro as well.[/quote] and I swear the last couple things I ordered came so fast I think they got someone to pull the item then drive it right over to my house.

[Guest ArmyVeteran37214]

I heard rumor that Amazon is expanding its operation in Murfreesboro.

[GlockSpock]

In Washington, the state was having FFL's collect the use tax on transfers.  :down:

 

This reminds me. I once called Fugate Firearms to inquire about a transfer. She informed me that it'd be $20 + $10 BC + Sales Tax. I disputed the sales tax part. She stuck to the story that it is state law. I have never had this brought up by anyone else before.

 

Thoughts?

[BryanP]

This sort of thing has been happening with other operations (with less political/economic power than Amazon) for a while.  When Newegg got big enough that they needed to expand they opened fulfillment warehouses in TN and NJ.  When they did that they started charging TN sales tax on orders.

 

No one is going to make you pay the use tax on what you ordered this past year, but this time next year when you place an order on Amazon you'll start seeing sales tax added to the total of the order.

[scoutfsu]

This reminds me. I once called Fugate Firearms to inquire about a transfer. She informed me that it'd be $20 + $10 BC + Sales Tax. I disputed the sales tax part. She stuck to the story that it is state law. I have never had this brought up by anyone else before.

 

Thoughts?

 

I would hazard a guess that they would pocket the "tax" money considering there's nothing that says they need to collect it.  Thats just me being cynical though.

[runco]

I got my notice. Decisions, decisions, heads I pay, tails I don't. Bt the law and ethically I should pay!  What to do!  Eeny, meeny, miny moe, ....

Edited January 25, 2013 by Runco

[cardia10]

Amazon still owes the state one more distribution center. Looks like Lenoir City is leading the race for #5.

[Fourtyfive]

Got one today too , whoopee !

[gregintenn]

Oops.....I deleted mine. :snore:

[Guest Sgt. Joe]

Great guys....Now I have something to look forward to :shake: 

[Oh Shoot]

Amazon sent same notice last year for purchases made in 2011 (and big thread here then too).

 

This notice is for purchases made in 2012.

 

They'll send same notice next year for purchases made in 2013.

 

They'll begin adding sales tax on purchases made in 2014, so no more notices.

 

TN tax law hasn't changed in many years, everyone is supposed to pay use tax on untaxed purchases made outside the state. That includes, of course, firearms.

 

- OS

Edited January 25, 2013 by Oh Shoot