If you live in North Carolina...

[dmnoland]

...you might find this interesting/maddening. Governments answer to everything-raise taxes or create new ones.

Here's the story:

Amazon.com cuts N.C retailers in face of tax hike
Posted: Jun. 26 6:10 p.m.
Updated: Today at 8:14 a.m.
RALEIGH, N.C. &mdashAmazon.com said Friday it has pulled the plug on commissions for North Carolina Web sites that make referrals to the online retailer, because a law designed to collect taxes on some of its sales transactions could soon be enacted.

Seattle-based Amazon said it wrote to Web site operators, telling them its "Associates program" will end after Friday. Web sites that posted links to the company about its products have received up to a 15 percent cut on sales.

But the Legislature is considering a provision in its final budget plan designed to collect sales taxes on these so-called "click-through" transactions.

Competing House and Senate plans both contain the provision, so it's likely to be in the compromise budget proposal that could be approved in the next several days.

"We felt that we had to take this step, and it's unfortunate," Amazon spokeswoman Patty Smith said, of discontinuing the program. "But we feel like we have little choice."

Amazon believes the proposed law would be unconstitutional, so eliminating the commission would prevent the company from having to collect the current 6.75 percent sales tax most consumers pay on purchases at in-state stores.

"In the event that North Carolina repeals this tax collection scheme, we would certainly be happy to reopen our Associates program to North Carolina residents," the e-mail said.

The provision would require companies that have reported more than $10,000 in sales each of the last four quarters through agreements with Web sites making referrals to collect sales tax on the state's behalf.

North Carolina expects to collect an additional $13.2 million in the coming fiscal year on the "click-through" transactions and by companies collecting sales taxes on music, video and software downloads purchased electronically, according to a legislative fiscal analysis.

Existing law requires North Carolina taxpayers to pay sales taxes for out-of-state purchases on their annual tax return, but it's an honor system.

Amazon's announcement is the latest in a legal fight involving states trying to get out-of-state companies that perform commerce largely online with their residents but have little or no physical presence in the state to collect taxes.

The stakes are large. Governments could generate $3 billion in new revenues if Web retailers had to collect taxes on all sales to consumers, according to Forrester Research.

Amazon sued New York in 2008 over a law similar to what North Carolina lawmakers are proposing, because it argued it unlawfully imposes tax-collection obligations on out-of-state entities. A trial court judge dismissed the case in January.

[Spike!]

Thanks David,
This is exactly why I have left NC in search of work and been successful doing so. Soon my Fiance will be relocating with me and the home is up for sale. BIG disappointment the state of NC turned out to be for us...real big.

[S.Joisey]

This actually brings up larger issues. States rely on sales tax for a significant portion of their revenue. The internet allows purchasers to circumvent sales tax since they no longer need to buy locally. It lowers tax collection rates, and puts in-state sellers at a competitive disadvantage.

So from a NC state legislator's point of view, their internet sales tax would not be a tax hike, but an attempt to rightfully recoup existing taxes circumvented by internet sellers. It would also serve to protect NC sellers from unfair internet competition.

Amazon's decision to cut all NC retailers seems draconian, but you can see the stakes. If NC succeeds, then most states will want an opportunity to recoup their sales tax.

[Overbuilders]

This is exactly why I have left NC in search of work and been successful doing so.

Where art thou, Spike! now?

[Spike!]

Where art thou, Spike! now?

Believe it or not for the summer I am 40 miles from Buffalo NY working for my friend building a $5m lake home. He also has as of Friday 11 other jobs under way. The better news is that he is not alone, ALL the builders and trades people in and around the Western NY area are swamped. My folks called 3 fence companies and the first available was mid November!!
I called an ornamental iron company to come look at about $12K worth of balusters and he said he doesn't drive that far....15 miles.

If I were able to hack the winters and cost of living here I would stay, but it looks like we might do 8 months here and 4 in Scottsdale AZ.

Speaking of weather, I got here 2 months ago and the weather has been 1000 times nicer than Charlotte's.

I could never imagine trying to market myself or look for work again in Charlotte.

[dmnoland]

This actually brings up larger issues. States rely on sales tax for a significant portion of their revenue. The internet allows purchasers to circumvent sales tax since they no longer need to buy locally. It lowers tax collection rates, and puts in-state sellers at a competitive disadvantage.

So from a NC state legislator's point of view, their internet sales tax would not be a tax hike, but an attempt to rightfully recoup existing taxes circumvented by internet sellers. It would also serve to protect NC sellers from unfair internet competition.

Amazon's decision to cut all NC retailers seems draconian, but you can see the stakes. If NC succeeds, then most states will want an opportunity to recoup their sales tax.

Well, 1. SCOTUS has ruled that interstate commerce is not subject to taxation. 2. Most states (NC included) try to get around the feds by asking you to pay a "use tax", same rate as the sales tax. Now we have the issue of double taxation. 3. One of the results of this is that some charity and ministries have websites with links/portals to Amazon where they receive a donation based on Amazon sales. Now they are shut down. 3. Last but not least, Heaven forbid that government actually reduce spending and cut waste like every household has had to.

[Spike!]

Amen David, well said.

[MarkMc]

I always thought that NC should have put a tax... errr, uh, an importation fee on all textiles entering the state by automobile by putting up Tex Inspection Stations on all US highway and Interstate border crossings [gots to leave the little roads open for the Dukes of Watauga] would have brought in more income than speed traps and prevented the surge of folks over the past 30 years that all wanted the infrastructure and left it up to the socialists to have to figure out a way to pay for. Suggested it to Jesse once and could see the light bulb go off [or was it on...] but he was to wrapped up in keeping the commies in Cuba in Cuba. Oh, the good old days.

[S.Joisey]

I always thought that NC should have put a tax... errr, uh, an importation fee on all textiles entering the state by automobile by putting up Tex Inspection Stations on all US highway and Interstate border crossings [gots to leave the little roads open for the Dukes of Watauga] would have brought in more income than speed traps and prevented the surge of folks over the past 30 years that all wanted the infrastructure and left it up to the socialists to have to figure out a way to pay for. Suggested it to Jesse once and could see the light bulb go off [or was it on...] but he was to wrapped up in keeping the commies in Cuba in Cuba. Oh, the good old days.

Wasn't that the Texaco stations that were all over?

[MarkMc]

Wasn't that the Texaco stations that were all over?

Yeah, but after paying for the stations, the inspectors, the RC cola and moonpies they couldn't get funding for the signs telling folks they had to stop.