Amazon Starts Collecting 2.9% CO Sales Tax - Starts 1 February 2016

[roberth]

Alright!! Amazon is going to help the government confiscate even more of your money.


Including Colorado, Amazon will be collecting sales taxes on purchases from 28 states come February.

http://kdvr.com/2016/01/15/amazon-to-start-collecting-sales-tax-on-colorado-orders/

[KAPA]

In the past, as an out-of-state retailer, Amazon did not assess state sales tax on purchases made by Coloradans, as consumers are supposed to voluntarily self-report and pay use tax directly to the state.

So, what has changed? Did Amazon open a store in Colorado?

[SouthPaw]

The only other time I have seen this is on bodybuilding.com. They mention something like they can collect sales tax if you do not voluntarily report them. If they do not have a store in CO, I shouldn't have to pay tax on it IMO.

[O2HeN2]

My guess is that they want to start a prime delivery service here which will give them a "nexus" in Colorado, requiring the collection of taxes.

O2

[KAPA]

My guess is that they want to start a prime delivery service here which will give them a "nexus" in Colorado, requiring the collection of taxes.

O2

What do you mean start it? I have had that for years now. I order something and it is here in two days.

It sounds like they are opening a call center or distribution center somewhere in the state which then makes them located in Colorado, thus the requirement. Seems like they should just stay in one state that is not very populated and then the other 49 can enjoy the no taxes deal.

[Irving]

That's not what he's talking about. Read here.

https://www.ar-15.co/threads/153857-FYI-Amazon-Prime-sale?highlight=Amazon+prime

[O2HeN2]

What do you mean start it? I have had that for years now. I order something and it is here in two days.
I'm not talking the normal 2 day delivery, this would be an amazon owned or contracted delivery service that would deliver from a local warehouse.

O2

[KAPA]

I'm not talking the normal 2 day delivery, this would be an amazon owned or contracted delivery service that would deliver from a local warehouse.

O2

Ahh gotcha, saves them money and costs us slightly more. I suspect that is where the drones come into play eventually.

[Irving]

They'll still have to pay the drivers.

[colorider]

My theory is simple. Greed. The state wants our money and now they are getting it. Simple.
SomeBody in power had to make Amazon start charging sales tax. Who? Nobody is saying.

[BushMasterBoy]

The state will give it to the FSA, you know to stop blood in the streets...

[O2HeN2]

I've got a friend that hobnobs with Bezos. I'll see if he has any info that he can share.

I found it quite surprising that the change happened without any court or legislative decision, too.

O2

[Jeffrey Lebowski]

My theory is simple. Greed. The state wants our money and now they are getting it. Simple.
SomeBody in power had to make Amazon start charging sales tax. Who? Nobody is saying.

I think it is what O2HeN2 said as well. Amazon doesn't mind sticking it to local government when it suits them. I don't think this has anything to do with the state of CO pushing on them.
I expect we'll have a distribution warehouse here, or, some sort of other prime perk (perhaps grocery or alcohol delivery?).


As a "prime" user for years, I'm actually OK with this if it cuts down on delivery. 2 days has so spoiled me that it feels like forever from other "e-tailers."
Put the distribution in Denver and maybe we'll get same day or 1 day service.
Even still, over the holidays (completely expected) I had a few "2 days" that went more like 4.

[Fromk]

Don't forget the part of the story that says 27 other states are doing this, too. That's over half of them. They aren't just picking on us.

As said above I'm pretty sure it's linked to a distribution center opening and that means they would legally have to start charging sales tax. It's also just 2.9% which is something I can live with. There have been times this year where was in the aisle of a store and purchased something I was looking at on Amazon which did in fact rob the state and city out of their money.

[KAPA]

Don't forget the part of the story that says 27 other states are doing this, too. That's over half of them. They aren't just picking on us.

As said above I'm pretty sure it's linked to a distribution center opening and that means they would legally have to start charging sales tax. It's also just 2.9% which is something I can live with. There have been times this year where was in the aisle of a store and purchased something I was looking at on Amazon which did in fact rob the state and city out of their money.

Interesting perspective.

[Martinjmpr]

In the past, as an out-of-state retailer, Amazon did not assess state sales tax on purchases made by Coloradans, as consumers are supposed to voluntarily self-report and pay use tax directly to the state.

So, what has changed? Did Amazon open a store in Colorado?

I think Amazon sees the writing on the wall and wants to get ahead of the game by starting to collect sales tax. if Congress ever passes the Marketplace Fairness Act they will be required to do so but as of now, at least, it looks like voluntary compliance on the part of Amazon.

I found this in an older article:


Colorado requires customers who buy from out-of-state vendors that do not collect the required 2.9 percent state sales tax to report and pay it themselves. The law dates back to the 1930s but is little-known and rarely followed.
The ruling appears to indicate the U.S. Supreme Court eventually may take on the thorny issue of online retailers collecting state and local taxes. Justice Anthony Kennedy, in a separate opinion, questioned a half-century-old Supreme Court case that bans states from collecting sales taxes from retailers who don't have a physical presence in that state.
"There is a powerful case to be made that a retailer doing extensive business within a state has a sufficiently substantial nexus to justify imposing some minor tax-collection duty, even if that business is done through mail or Internet," Kennedy said.


http://www.denverpost.com/business/ci_27636421/supreme-court-kicks-colorado-online-tax-case-federal

[JohnnyDrama]

My wife is gonna hate this.

[milwaukeeshaker]

It's simple fellas, don't buy anything from Amazon, vote with your wallet. If they lose massive sales, they will change their mind.

[Monky]

Amazon has been keeping records on it for a while, and the state has been trying to force them. There was an email by amazon years ago... Basically stating we aren't doing it but your state requires you to report it..so this is how much you spent... it's total bs. The state trying to find a way to increase $$$ that they're losing out on.

2.9% is still cheaper than going to the damn mall.. getting hit with 8%, then tacking on the 1.9% local improvement fee or whatever it is..

In all fairness at least Amazon is announcing it.. there are other retailers who just started collecting it. I noticed it over xmas. I forget where I ordered from, but I know for a FACT they don't have a store in state.

[sic_semper_tyrannis]

This has been a long time coming. I'm actually ok with it, but only because it could have been much worse. It's only going to be the state 2.9% sales tax, which is manageable. It would suck much worse if they implemented all the individual county/city/special tax zones, which would put the tax rate almost to 10% in certain parts of the metro area, and only as low as ~6% in the best areas. Understand that taxes on online sales was inevitable, it was just a matter of when it would finally hit us. I don't blame Amazon, and the free ride was fun while it lasted. No one honestly thinks that the state govs were just going to ignore the potential tax revenue from hundreds of billions of dollars in online sales that they have been missing out on?

[Martinjmpr]

This has been a long time coming. I'm actually ok with it, but only because it could have been much worse. It's only going to be the state 2.9% sales tax, which is manageable. It would suck much worse if they implemented all the individual county/city/special tax zones, which would put the tax rate almost to 10% in certain parts of the metro area, and only as low as ~6% in the best areas. Understand that taxes on online sales was inevitable, it was just a matter of when it would finally hit us. I don't blame Amazon, and the free ride was fun while it lasted. No one honestly thinks that the state govs were just going to ignore the potential tax revenue from hundreds of billions of dollars in online sales that they have been missing out on?

Pretty much how I feel, too. This was going to happen, sooner or later. To be fair, internet retailers have been getting a "free ride" for 20 years. That free ride is coming to an end but I can't imagine that 2.9% is going to change anyone's habits. It's not like that 2.9% is going to push the price to a point where it's cheaper to shop locally.

[Irving]

Amazon is advertising as little as two-hour delivery times for prime members.

[mattiooo]

Use tax is nothing new. We've all been responsible for paying it. It's just nobody does, and nobody has been enforcing it.

https://www.colorado.gov/pacific/tax/consumer-use-tax-quick-answers

[GilpinGuy]

I think Amazon didn't allow affiliate sales (is that what you call call them?) if you lived in CO because of the sales tax issue. Will they allow them now?

[KAPA]

Amazon has been keeping records on it for a while, and the state has been trying to force them. There was an email by amazon years ago... Basically stating we aren't doing it but your state requires you to report it..so this is how much you spent... it's total bs. The state trying to find a way to increase $$$ that they're losing out on.

2.9% is still cheaper than going to the damn mall.. getting hit with 8%, then tacking on the 1.9% local improvement fee or whatever it is..

In all fairness at least Amazon is announcing it.. there are other retailers who just started collecting it. I noticed it over xmas. I forget where I ordered from, but I know for a FACT they don't have a store in state.

THIS!! Ever made the mistake of going to Park Meadows between Thanksgiving and January 5thish? I would pay twice as much to get what I need from Amazon rather than deal with that parking and traffic. All those extra taxes just put it way over the top too. Hopefully we at least get the distribution center and maybe Prime will have same day delivery.

[Jeffrey Lebowski]

THIS!! Ever made the mistake of going to Park Meadows between Thanksgiving and January 5thish? I would pay twice as much to get what I need from Amazon rather than deal with that parking and traffic. All those extra taxes just put it way over the top too. Hopefully we at least get the distribution center and maybe Prime will have same day delivery.

Yep, x2. Not in over 10 years on Park Meadows, but I agree with the concept.
There are some local independent stores in Golden here I will intentionally support even though I know Amazon is less, because I like the owners or the service or whatever.

However, for the most part, I'd rather it just show up 2 days later and save me the trip. 2.9% isn't going to change that, and neither is parity with local sales tax. I personally love amazon, I love the points, and I only don't buy there when I can't or when there is someone I'd like to support more.

[kidicarus13]

I found it quite surprising that the change happened without any court or legislative decision, too.

O2
https://legisource.net/2013/09/19/court-ruling-might-reboot-colorado-amazon-tax/

[O2HeN2]

https://legisource.net/2013/09/19/court-ruling-might-reboot-colorado-amazon-tax/
That's over two years old. Perhaps I should have said that nothing *recently* has happened that would have driven the collection of state tax. It's almost if Bezos got up one morning and said "Let's start charging tax in Colorado!"

I'm sure there's a reason, it's just a mystery to everyone at this point as far as I can tell.

O2

[KAPA]

Yep, x2. Not in over 10 years on Park Meadows, but I agree with the concept.
There are some local independent stores in Golden here I will intentionally support even though I know Amazon is less, because I like the owners or the service or whatever.

However, for the most part, I'd rather it just show up 2 days later and save me the trip. 2.9% isn't going to change that, and neither is parity with local sales tax. I personally love amazon, I love the points, and I only don't buy there when I can't or when there is someone I'd like to support more.

I used to love going to Golden. Woody's Pizza was great and I loved that general store they had there kind of across from it, but ever since that goofy Golden Police Chief spoke at the capital building during the gun law hearings, I refuse to go anywhere near Golden.

[Dave]

2.9% won't really affect me shopping on Amazon since I already save enough on two day shipping with prime. I'd also hope it means we can get at least one of their distribution centers here and get faster service. I'd be willing to try their grocery delivery service if that got opened in the area.

[Jeffrey Lebowski]

I used to love going to Golden. Woody's Pizza was great and I loved that general store they had there kind of across from it, but ever since that goofy Golden Police Chief spoke at the capital building during the gun law hearings, I refuse to go anywhere near Golden.

Interesting way to look at things, although I certainly won't mind it. Tourism allows the city to have many things a town this size shouldn't be able to support, but Wash gets packed 9 months of the year for sure.
The general store has been gone long before the chief spoke. He lives in my neighborhood. What a piece of work he is (I've met him, I don't know him though). My neighbor across the street is also on the force and definitely has some stories, but suspect BK is angling for his next position. Believe it or not, he shows up at the Republican caucuses. [Shake]

[roberth]

I thought there would be a little more backlash on this. This is just the beginning, government will raise taxes on internet purchases until they kill innovation and force everyone back to brick-and-mortar.

[Irving]

I thought there would be a little more backlash on this. This is just the beginning, government will raise taxes on internet purchases until they kill innovation and force everyone back to brick-and-mortar.

I think you're being way to cynical, that probably won't happen.

[roberth]

I think you're being way to cynical, that probably won't happen.

I'm not cynical, I'm a realist rooted in reality.

Has government over-regulated the cash-cow oil industry? Yes
Has government over-regulated small business? Yes
Has government over-regulated big business forcing them oversears? Yes
Has government squandered billions of tax receipts and then turned around and taken more? Yes

[Irving]

Oh they'll do their best to milk it, but they won't outright kill Internet Sales. Same as smoking. The ONLY thing the government ever cared about was money, hence the sin taxes as opposed to an outright ban.

[kawiracer14]

With the Amazon Prime store card it will still likely be cheaper to shop from there than locally. You get 5% back on all purchases and this is only the state 2.9% tax.

[Monky]

With the Amazon Prime store card it will still likely be cheaper to shop from there than locally. You get 5% back on all purchases and this is only the state 2.9% tax.

I order a lot on amazon..but never enough to justify getting an amazon card.. Jebus how much do you order!

[kawiracer14]

I order a lot on amazon..but never enough to justify getting an amazon card.. Jebus how much do you order!

What is there to justify? No annual fee and automatically 5% back every statement. For me that pays for the Prime membership pretty quickly.

The majority of what I buy each year is from Amazon. Also just bought a condo so lots of crap for that coming from Amazon.

[Monky]

What is there to justify? No annual fee and automatically 5% back every statement. For me that pays for the Prime membership pretty quickly.

The majority of what I buy each year is from Amazon. Also just bought a condo so lots of crap for that coming from Amazon.

Is it just 5% back on amazon? Or all over? I get 3% back everywhere..

[Honey Badger282.8]

This is what you do, get AmEx Blue Cash Preferred. 6% cash back at grocery stores. Buy gift cards.

[brutal]

This is what you do, get AmEx Blue Cash Preferred. 6% cash back at grocery stores. Buy gift cards.

Good deal, but all lurkers be aware that card carries an annual fee.

[Irving]

Yes it does.

[Honey Badger282.8]

Good deal, but all lurkers be aware that card carries an annual fee.

$75 per year