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Re: “The messy truth behind Amazon's Tennessee tax tradeoff

No one likes taxes, but in a state that doesn't have an income tax, sales taxes are a huge revenue generator. Sales tax laws say (and I'm simplifying) you have to pay tax on your purchases of goods. You said why should you have to pay for something that you bought from a company in another state off the internet. The law says if you didn't pay sales tax, then you pay use tax. Use tax mirrors the sales tax laws and tries and capture those of us who didn't pay sales taxes. You also point out that you paid sales tax on your WI purchases so why do you have to pay them again. You probably don't. If you paid $5 of sales taxes in WI and then brought that same good to TN, you get a $ for $ credit for the taxes in WI.

Let's get realistic here for a second. It is nearly impossible for anyone to keep track of that and almost as impossible to enforce. But businesses have to be wary in case they are audited for sales and use tax purposes. And that happens all the time. When was the last time an individual was audited for sales and use taxes? I can't think of any.

What Amazon got is a great deal for them and TN residents who want to order from them. I bet you that from the publicity that this garnered, people who didn't know they could buy something tax free, probably will now! It'll be interesting how the traditional brick and mortar stores handle this in the court room. And I guarantee this deal is headed straight to court by the Walmarts & Targets.

1 like, 2 dislikes
Posted by jrztonashville on 05/19/2011 at 3:53 PM

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