questionsdid amazon start collecting taxes while i wasn't…


Maybe they're not sure of the tax rate they should charge, so they just spin the Wheel of Destiny and assign that rate to you.


@capguncowboy: Yeah, it doesn't make any sense to me at all. Charge for digital but not for physical orders. Charge what appears to be arbitrary rates. I don't get it. Did I just get lucky or are they doing this to other people as well?


They probably recalculated tax rates for your region recently and there was some kind of change to the tax code. For example, your county might have an extra electronics recycling tax that was recently enforced online. Amazon does differentiate between different products based on tax codes and what counties enforce what.

At 10%, I would just go to Ebay and buy one new. They don't enforce tax most of the time.


@zuiquan: so, some sites apparently collect tax (digital rates can be different than standard) if the publisher has an office in that state. This has happened to me with iTunes and amazon.


My city is in heavy competition to get a huge new Amazon distribution center, which will guarantee I'll end up not only paying state sales tax on my small fortune in Amazon purchases but also the additional bit of dedicated local sales tax we have for infrastructure.



@okham: That's really interesting. I wonder if that's what the deal is. This whole system is completely jacked. I have no problem paying the tax, although the state I'm currently living in is one of the most ridiculous sales tax-wise with, I think, 400 some odd different tax rates depending on where you are at any given moment. If they'd standardize everything it'd make life so much easier. What really got me was the two different rates for the same product. Craziness.

@skispeakeasy, It wasn't an actual kindle, just a couple books with different rates. Weirdness.


@magic cave: Please tell me you are kidding. Amazon Prime still beats going to Walmart, but a 7% sales tax really takes the edge off the savings.
Keep your fingers crossed that once again we'll be considered too podunk of a town to score something as big as this.


I live in a lucky state - I get to pay tax at Amazon and woot! but I still find that I get better deals from Amazon than some of my local stores.


I have been paying tax to Amazon since last year. I look for the same item sold by the marketplace but shipped Prime, no tax. Better to file the 6% (State) than be charged 8.25% (local).


Amazon struck a deal with my state to open a distribution center and start charging sales tax, but the deal also included enormous tax breaks for Amazon. The way I see it, Amazon is going to collect the state's 7% sales tax, give it to the state, and then get it right back in the form of tax breaks.

If I'm going to pay sales tax, I want it going to my state, not right back to the company collecting it. I'll be going to Best Buy now, since they'll price-match Amazon now.


i was reading this article in fortune may edition- the print edition tells a more complete story. I didnt get to finish it; my doctors waiting room is thankfully fast.


I've got an email in to Amazon's tax people now to see what the deal is with this. Hopefully they'll be able to tell me why the variance in rates and why some digital orders (kindle books) are taxed and others (mp3s) are not. I could better understand if I lived in one of the states where Amazon collects taxes but I don't.


@yankeefan1087: they do? That's decent news - since many times i need something "right now" but have to settle for 3.99 next day shipping, lol.


And the answer:

Recently, several publishers modified their relationship with Amazon to a business model whereby the publisher, not Amazon, sells the Kindle book. Kindle books sold by the publisher are subject to sales tax based on the publisher’s state tax reporting obligations and the taxability of digital books in those states.

As a result, sales tax for Kindle books sold by the publisher may differ from the sales tax to which you’ve been accustomed for Kindle books. Kindle books sold by Amazon Digital Services, Inc. are subject to sales tax in Kentucky and Washington State.


@magic cave: If Amazon comes to the Westside - I wonder if their future employees will like the outer beltway toll road. lol

And if they do come - will we have to pay sales tax for Woot purchases? hah!


@lavikinga: Personally, I hope they don't come here, although it sounds as if it's pretty likely. OTOH, though, the 3,000 jobs they expect to provide (between two different fulfillment centers in the state) would be fairly beneficial to the area.

And depending on what their pay levels and opportunities might be, I'd be half tempted to check out part-time employment there. Maybe. Or maybe not. Retirement is kinda fun.


@kbsig106: I hadn't even thought about the toll-road aspect. However, the business journal has reported that both FedEx and Amazon are interested in building at Cecil Commerce Center, which is a straight shot out Normandy. I think it would be possible for most folks to get there without using the beltway at all. Maybe.


@lavikinga: Oops, forgot to mention that Amazon is planning two major Florida centers; the other likely/logical location is Lakeland. (Love that alliteration?) It would seem that whether we get one of their locations or not, there will soon be a 'presence' in the state which will mean sales taxes for thee and me regardless. If that's the case, this area might as well get the new jobs as somewhere else, I guess.


@magic cave: #1 son is STILL looking for a job. It's been almost a year since he graduated from UNF. Snagging a job at a distribution center would be a god-send at this point and best of all, he could avoid those two clogged arteries out of town by going "the back way" as we call it.
I was thrilled to realize I can cut a solid 25 minutes off a return trip from P'cola by taking the Cecil exit and come home from the southern route. FABulous!
@kbsig106: I wonder if residents and area workers could obtain a type of discount pass?


@lavikinga: Sunpass would be the only way to get a discount I guess. I worry about the trucks (not the employees) leaving the distribution center trying to avoid the outer beltway toll road to get up to I-10 or I-295. Chaffee, 103rd, Normandy, Hammond and so on...

The FedEx project is 300K sqft under roof, should be nice when completed off of New World Ave.

As a UNF alum c/o '99 - I hope your son finds a job, a year out must be a downer. Things are staring to improve though, I picked up 4 new permit consulting projects this week.


@lavikinga: Re: #1 son and jobs. Do you still have my name or email from The Great Turkey Timer Swap? I'm in the phone book. Call or email me if you have few moments.

Or send me a link so I can PM you.


@kbsig106: Is the FedEx site out at Cecil? (I don't know the street names out there.) The last I'd heard they were looking at 500k sq ft at Cecil, so my news may be outdated.

If Amazon lands out there, traffic will be fairly horrendous, and you just know employees will want a no-toll access. I would hope [wry grin] that truck drivers would be advised by Amazon which routing to use, since the non-expressway roads not only won't be able to handle the truck traffic but there's also no way to widen them without really displacing a lot of homeowners and small businesses.

And congrats on new business coming your way!


@magic cave: PM awaits
Dopey me! I just realized I forgot to include my email. Jeesh!


@magic cave:When I was bidding, the plans I looked at for "distribution center aka FedEx" were 300K. Maybe it has grown - it was about a 60 acre total tract. The GC I was bidding under did not get the job... bummer