Amazon To Collect Sales Tax In NJ

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Starting next year, Amazon will begin collecting sales tax in NJ. The company will also build two distribution centers in the state as well.

Online retail giant Amazon.com plans to build two huge distribution centers in New Jersey, creating what Gov. Chris Christie said today will be 1,500 full-time jobs. But New Jerseyans intent on buying a big-screen TV or laptop computer should act quickly: Come July 2013, Amazon will start collecting a 7 percent state sales tax — whether or not the sprawling warehouses are built.
 
Tax-free online ordering was awesome while it lasted. I would even say, no taxes was a good incentive for online ordering to take off.

Though now that online ordering is on it's feet, some sort of solution will have to be determined.

While collecting local sales tax is a pretty easy solution (many are used to this already), seems like a complicated system for a company to collect 50 different rates, not to mention cutting 50 checks to get the money to the states. Though maybe their cc processing service would provide a solution???
 
Tax-free online ordering was awesome while it lasted. I would even say, no taxes was a good incentive for online ordering to take off.

Though now that online ordering is on it's feet, some sort of solution will have to be determined.

While collecting local sales tax is a pretty easy solution (many are used to this already), seems like a complicated system for a company to collect 50 different rates, not to mention cutting 50 checks to get the money to the states. Though maybe their cc processing service would provide a solution???

It would far beyond 50 different rates though. Counties within each state may have their own sales tax rate that is higher than the state minimum. (For example, Erie County, NY is at 8.75% but New York as a whole is lower than that. I am just not sure how much lower.)
 
While collecting local sales tax is a pretty easy solution (many are used to this already), seems like a complicated system for a company to collect 50 different rates, not to mention cutting 50 checks to get the money to the states. Though maybe their cc processing service would provide a solution???

No this isn't charging tax to the other 49 states.

This is just state tax for NJ residents.
 
Ah... seeing the other reply.. you weren't referring to states but counties.. My bad.
 
Steve, your statement is backwards. They are building two distribution centers in the state so they must collect sales tax in that state. Living in WA state I've always had to pay sales tax on Amazon because of their headquarters here.
 
on the bright side, us new jerseyans should get our purchases a bit quicker now that they ship from instant.

First it was newegg, now amazon.

It was good while it lasted but the taxman cometh for us all.
 
It would far beyond 50 different rates though. Counties within each state may have their own sales tax rate that is higher than the state minimum. (For example, Erie County, NY is at 8.75% but New York as a whole is lower than that. I am just not sure how much lower.)

I used to work at a company that made an order management software, and it is incredibly difficult to design a system that sets the tax rates correctly for the different locations.

This is because you would need a system that can accurately determine the county lines, when zip codes can span more than one county. We also couldn't expect the company using the software to ask their clients which county they live in, since they often didn't know. The only way we figured it out is to do it by township/city name, or outsource the software to make the determination of which county the address was in.
 
It's probably smart of Amazon to build their new distribution centers in New Jersey: New Jersey is one of the most tax-happy states, so they'll be able to get the New Jersey government to STFU about taxless online purchases, and most New Jersey residents are already indoctrinated into the mindset that their government owns everything and graciously allows them to keep something whenever they make a private exchange.
 
(I should stress most New Jersey residents, not all, the point being there won't be as much righteous anger in New Jersey as there might be elsewhere.)
 
I used to work at a company that made an order management software, and it is incredibly difficult to design a system that sets the tax rates correctly for the different locations.

This is because you would need a system that can accurately determine the county lines, when zip codes can span more than one county. We also couldn't expect the company using the software to ask their clients which county they live in, since they often didn't know. The only way we figured it out is to do it by township/city name, or outsource the software to make the determination of which county the address was in.

If Amazon was smart, they would put the requirement to maintain the accurate tax rates of all the counties directly on the state comptrollers by having a GUI/system that they could log into to fill in all the data. Might make the comptrollers think twice about what they are actually asking these companies to do.
 
it goes beyond counties - here in AZ the sales tax varies from city to city - even within counties and we have county islands wheer you might be surrounded by a city, but not in it - what amess that would be
 
My home state. Good thing I don't live there anymore. :p I'll forward that nj.com article to my folks to let them know they have 13 months left for tax-free shopping on Amazon. :(
 
Where's Christie?

That asshole's the one who pushed for this.

I love the area where I live, but aside from a handful of institutions like NJ Manufacturer's Car Insurance... basically everything corporate or government here is stupid and bad.
 
That asshole's the one who pushed for this.

I love the area where I live, but aside from a handful of institutions like NJ Manufacturer's Car Insurance... basically everything corporate or government here is stupid and bad.

Still be mega fucktons cheaper than Best Buy. Don't have a problem with this at all...I'll consider it a down payment on faster shipping
 
*technically* there's really no change, you're *supposed* to remit unpaid sales tax back to the municipality/state
 
If I read the article right, Amazon just made the citizens of NJ (me included) to pay sales tax whether or not the warehouse for Amazon is built. Also 1500 full time warehouse jobs is not what we need in the state. There is so much empty space retail and warehousing.

It was fun while it lasted Amazon but my wife and I are going to have to look into other options.
 
At least one benefit of the 'cool' dotcoms not wanting to be anywhere near Michigan.
 
Someone got them some great tax incentives in NJ.

This is not hard to figure out.
 
This blows!:mad: NJ taxes the shit out of me every year and now this! Thanks, Gov. Christie. Now go screw yourself.
 
As a huge Amazon fan, I really wish online stores would just start collecting taxes. Why should local businesses be put at a disadvantage? And why should you get to buy stuff online w/no taxes and make your neighbors who don't buy online, pay more. Its a fucking loophole. Everyone is for it when it benefits them, but when people put money in offshore accounts to hide then people care. If its someone else scamming system its a problem. If its you doing it you'll fight tooth and nail to keep it the way it is.

Its just dumb.
 
Surprised it took so long. Time for Amazon to play by the rules of retail.

I support all states collecting sales tax from online sales.
 
Well look at the bright side, if you don't wan't to pay it you will have to move out of New Jersey, so at least you won't live in New Jersey anymore....


amirite?
 
I live in AZ, which has a distribution center.. no sales tax. That is a deal setup state by state.

All I can say is if they start charging in AZ, I dump my prime, and go somewhere else. Maybe since I come from MT is why I find sales tax so repulsive.
 
Seeing as I live in CommieFornia I am used to this and shop at Fry's or Micro Center. If I could screw Ca out of any sales tax or tax collection I do but its getting harder to beat them. Guess when you support millions of unessisary mouths you got to get the money from some were.
 
They already collect sales tax in NJ according to my last order. News media could just ask a few residence and find out. Nah too much work.
 
As a huge Amazon fan, I really wish online stores would just start collecting taxes. Why should local businesses be put at a disadvantage? And why should you get to buy stuff online w/no taxes and make your neighbors who don't buy online, pay more. Its a fucking loophole. Everyone is for it when it benefits them, but when people put money in offshore accounts to hide then people care. If its someone else scamming system its a problem. If its you doing it you'll fight tooth and nail to keep it the way it is.

Its just dumb.
No one is stopping you from paying on-line sales taxes when you file your tax return form. ;)
 
Living in PA for the win, at least for newegg still. No tax but still get it within a day or two because the warehouse is in NJ. Amazon I pay tax for, but the warehouse is usually the one that is like 30 minutes away from where I live, so usually always next day its here.
 
^ On that note, the bright side is that w/ the new distribution centers in NJ, free shipping will be like upgraded 2-day shipping for NJ residents.
 
Seeing as I live in CommieFornia I am used to this and shop at Fry's or Micro Center. If I could screw Ca out of any sales tax or tax collection I do but its getting harder to beat them. Guess when you support millions of unessisary mouths you got to get the money from some were.

Move then? Whiney bitches.
 
I guess its a good thing California is so business unfriendly. I can't see Amazon building here anytime soon. CA sales tax is over 9%, so on large orders it really adds up. Thats one of the reasons I quit shopping at newegg.
 
I guess its a good thing California is so business unfriendly. I can't see Amazon building here anytime soon. CA sales tax is over 9%, so on large orders it really adds up. Thats one of the reasons I quit shopping at newegg.

Dont forget each county can add to the sales tax to generate additional funds. Go buy something expensive in LA or San Diego counties.
 
My home state. Good thing I don't live there anymore. :p I'll forward that nj.com article to my folks to let them know they have 13 months left for tax-free shopping on Amazon. :(

*technically* there's really no change, you're *supposed* to remit unpaid sales tax back to the municipality/state

No one is stopping you from paying on-line sales taxes when you file your tax return form. ;)

nice little flip flop you did there, so then you know what ml_paladin888 pointed out is correct. You are SUPPOSED to report stuff you purchase online on your yearly tax forms. The fact that people don't do it is why they are pushing so hard for these companies to start collecting.


People shouldn't bitch about having to pay taxes, they should bitch how their taxes are wasted. Taxes do have good uses, but they also have their bad.
 
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