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Amazon state tax ruled unconstitutional in IL
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GP Racer
 
Posts: 1,307
Join Date: February 11, 2012
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Amazon state tax ruled unconstitutional in IL - October 19, 2013, 10:52 AM

Illinois Supreme Court Throws Out

Maybe VA courts will follow this ruling. God bless less taxes!


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Location: Fairfax, VA
October 21, 2013, 09:03 AM

I thought part of us having to pay VA sales tax on Amazon was because Amazon has moved a lot of their operations in VA, they built warehouse hubs, have a lot of offices in VA to support their government work. So now its just like how we have to pay sales tax when buy online from somewhere like best buy, walmart... etc
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October 21, 2013, 09:52 AM

^ exactly. We'll always pay tax on amazon stuff as long as amazon has a physical presence in VA.


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October 21, 2013, 10:24 AM

Have it shipped to Delaware. Pick it up there. Or have it shipped here. No state sales tax.


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October 21, 2013, 01:05 PM

From what I read, IL's law was unconstitutional because it required people to pay sales taxes for purchases made in other states (or report it on their income tax?) irrespective if the retailer/supplier had a location inside that state.

It certainly opens up an interesting discussion as to why a state resident should have to pay sales tax on an e-commercae transaction if the retailer only has a distribution center in the state.

And then what of service transactions where they work product is not in your state? i.e. Harry and David gift baskets or 1-800-Flowers to Mom?

Or, what if you execute the transaction while outside the state?
The transaction did not occur within the state borders. The consumer is only having the item shipped to their home address.

Fundamentally, this is one of the items the Government used to charge Dennis Ksylowski (former Tyco exec). He would purchase millions of dollars in art work from New York galleries, but instructed the gallery to have the art transferred to Rhode Island where there is no sales tax and execute the sale, after which the pieces would be sent back to his New York City Penthouse.

The government called it tax evasion. I call it smart tax abatement.



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Last edited by Heist; October 21, 2013 at 01:08 PM..
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October 21, 2013, 01:14 PM

It's a matter of time before they pass a federal bill on internet transactions. Not that I think it's a good thing but it has always been a bit unfair to the local stores.


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