Why do I pay Tax in Texas?
Sorry if this has been addressed before but why do I pay sales tax in Texas for Woot items? I know that they are in Texas so you normally need to sales tax but I don't for amazon purchases and they are umbrella'd under corporate law. Why does this not fall under the same umbrella? I even think that Texas tried to get Amazon to pay sales tax to Texas and they blew them off. Here is the story. http://goo.gl/qgbYz
by
philosopherott
asked 4 months ago
AFAIK, woot is not a part of amazon, It's owned by amazon as a totally separate entity, with occasional cross promotions between companies.
@kamikazeken: Really?? lol
You will normally pay tax to an on-line entity if that entity has a physical presence in your state. I hit the jackpot and get to pay tax for both Amazon and woot! purchases.
You pay taxes in Texas because y'all are BIG. A BIG state. BIG hair. BIG cars. BIG oil wells. More importantly...what @theoneill555 said. Taxes are paid where ever there's a physical presence. BIG or not. ;-)
Internet sales in general have become so popular that a lot of states are trying to get online retailers to charge sales tax for purchases. Here is a recent story from my region...
http://www.myfoxtwincities.com/dpp/news/internet-sales-tax-mn-jan-11-2012
If you are in Texas, you would pay Texas sales tax on Woot purchases because Woot is in Texas. Before Woot was purchased by Amazon, those of us in Washington did not pay sales tax on Woot purchases. Now we do, because Amazon is based here in Seattle. I am not sure of the legal details, but it seems to me that because Woot is in Texas, you might have to pay taxes on your other items from Amazon, but I know Amazon has made special arrangements with some states to forego sales tax collection despite some nebulous presence in those states. Amazon's sales tax battles periodically make the news.
Florida is going through similar contortions. Amazon is considering opening a warehouse facility here, which means the state would get lots of new jobs, but Amazon wants sales-tax forgiveness as part of the deal. We have a nutcase for a governor, and he and the equally nutty legislature are apparently stuck in the "What to do? What to do?" game.
Since spouse and I spend a fortune on Amazon, we're really hoping for the no-sales-tax end result.
Ultimately, the answer is probably so that the oil companies can pay less taxes and continue to make more money there... ;-)
Because despite your Governors desire, you're still part of the United States.
@magic cave: so you're a tax cheat who doesn't claim their out of state online purchases on their state tax forms? lol
@kamikazeken: To which tax forms do you refer?
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