Amazon has not been paying sales taxes since 2005, per state law, so the state legislature creates a bill to collect back taxes and Rick "I hate education" Perry, vetoes the bill.

Okay... 300+ teachers are being laid off in Allen,

You're right (I'm inferring ) that the tax should be a national mandate. Again, while I'm not a fan of taxes, a national law on sales tax would fall within the interstate commerce provision and is long overdue. Lack of a fair tax on goods sold is crippling our education system.

Sure it is. The retailer selling the product will have to collect the tax and remit to the state where the product is being sold. Not saying this would be a federal tax, not at all. The landscape of retailing has changed dramtically over the last ten years, and, not surprisingly, our government in it's archaic thinking isn't keeping pace.

I would never recommend having the federal government handle this money. Before long we'd be sending it to the south pole for jello wrestling matches: http://www.washingtontimes.com/news/2011/may/26/ta...

• carygold Said:

Once again, Amazon owes no taxes!!!! Texas wants Amazon to collect sales tax from Texas residents. By Texas law you are responsible for sending in your Texas sales tax for any merchandise purchased online. (i.e. it is your taxes that Texas wants Amazon to collect for it.)

Have you followed the law and sent in your sales tax?

Have you been watching this from the beginning? Probably not. Basically, Amazon said if they have to pay taxes, they will lay off all their workers and leave Texas. That's a lose-lose situation. Last I heard that's what they did. Now how does that pay teachers salaries if the company just leaves? Do teachers get paid from sales tax?

• Joe Schirmer Said:

It is state law if you have a presence in the state (i.e. offices, warehouses, etc) you are required to collect and pay sales tax to the state.

The fact that Amazon failed to follow the law, does not mean they do not owe the taxes on sales, ask any business in Texas.

I have purchased items online from Borders, Barnes and Noble, Apple, and Dell and paid sales taxes on each item I purchased from them ... if they can follow the law then so can Amazon.

• carygold Said:

Can you provide a source for this?

• Al C Said:

In general, if a company does not charge state sales tax on your purchases then you are responsible for sending in the tax yourself. If you did not send in your taxes owned on the Amazon purchases then you did not not follow state law.

• Joe Schirmer Said:

That is correct, but that does not release the company of its responsibility to collect sales taxes. And if the company does not collect sales taxes and does not remit those taxes when due there are penalties.

This is the part that confuses me in this whole discussion. Amazon claims they are going to close the distribution center so the don't have to collect sales taxes in Texas but my understanding is it was a federal court ruling that said that if they have a physical presence in a state they are required to collect the tax. If that is true, then wherever they put the distribution center they would be required to collect tax from customers in that state. I don't see how they would be saving much and as somebody else said they already collect taxes in several other states. I think it's all posturing.

(Joe you are probably technically correct that the consumers are supposed to pay the sales tax but I think we all know that is completely unenforceable and simply isn't going to happen. In my mind that makes it irrelevant to the discussion.)

• Al C Said:

Public sources say we are going to loose 50 to 60 school jobs... but that is because they believe Perry is going to ride in on a white horse and pretend to save the day, i.e. teachers jobs.

My personal sources say if the worst happens we could be at 300 jobs.

The law would also allow/require Amazon to make public the customers who did not pay tax, back bill them, and open the door to possible state fines for lack of payment, from what was said a few weeks ago in a news summary. Anyone who bought from Amazon and did not send a check for tax to the state technically owes back taxes and late payment fees and fines.

This could end up closing that budget deficit.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

...(1) Direct sales organization--A person that typically sells taxable items through independent salespeople and not in or through a place of business. The term "independent salespeople" includes, but is not limited to, distributors, representatives or consultants. Items are typically sold person-to-person through in-home product demonstrations, parties, catalogs, and one-on-one selling. The term includes but is not limited to, direct marketing and multilevel marketing organizations.

...(2) Engaged in business--A person is engaged in business in Texas if the person has nexus with the state as evidenced by, but not limited to, any of the following:

......(A) maintains, occupies, or uses, permanently or temporarily, directly or indirectly, or through an agent, by whatever name called, a kiosk, office, place of distribution, sales or sample room, warehouse or storage place, or other place where business is conducted;

......(B) has any representative, agent, salesperson, canvasser, or solicitor who operates in this state under the authority of the seller to conduct business, including selling, delivering, or taking orders for taxable items;

......(C) promotes a flea market, arts and crafts show, trade day, festival, or other event that involves sales of taxable items;

......(D) uses independent salespersons in direct sales of taxable items;

......(E) derives receipts from a rental or lease of tangible personal property that is located in this state or owns or uses tangible personal property that is located in this state, including a computer server or software;

......(F) allows a franchisee or licensee to operate under its trade name if the franchisee or licensee is required to collect Texas sales or use tax; or

......(G) conducts business in this state through employees, agents, or independent contractors.

...(3) Itinerant vendor--A seller who does not operate a place of business in Texas and who travels to various locations in this state to solicit sales.

...(4) Kiosk--Kiosk means a small, stand-alone area or structure that:

......(A) is used solely to display merchandise or to submit orders for taxable items from a data entry device, or both;

......(B) is located entirely within a location that is a place of business of another retailer, such as a department store or shopping mall; and

......(C) at which taxable items are not available for immediate delivery to a customer.

...(5) Nexus--Nexus means sufficient contact with or activity within this state, as determined by state and federal law, to require a person to collect and remit sales and use tax.

...(6) Permit holder--A person who has been issued a sales or use tax permit. The term includes permitted sellers as well as permitted purchasers who owe tax that was not collected by a seller.

...(7) Person--The term person includes a natural person, corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association and any other legal entity.

...(8) Place of business of the seller--The term means an established outlet, office, or location that the seller, his agent, or employee operates for the purpose of receipt of orders for taxable items. A warehouse, storage yard, or manufacturing plant is not a "place of business of the seller" unless the seller receives three or more orders in a calendar year at the warehouse, storage yard, or manufacturing plant. As of September 1, 2009, a kiosk as defined in paragraph (4) of this subsection, is not a place of business for purposes of collecting local sales and use taxes.

...(9) Seller--Every retailer, wholesaler, distributor, manufacturer, or any other person who sells, leases, rents, or transfers ownership of taxable items for a consideration. Seller is further defined as follows:

......(A) A promoter of a flea market, trade day, or other event that involves the sales of taxable items is a seller and is responsible for the collection and remittance of the sales tax that dealers, salespersons, or individuals collect at such events, unless those persons hold active sales tax permits that the comptroller has issued.

......(B) A direct sales organization that is engaged in business as defined in paragraph (1) of this subsection is a seller.

......(C) Pawnbrokers, storagemen, mechanics, artisans, or others who sell property to enforce a lien are sellers.

......(D) An auctioneer who does not receive payment for the item sold, does not issue a bill of sale or invoice to the purchaser of the item, and who does not issue a check or other remittance to the owner of the item sold by the auctioneer is not considered a seller responsible for the collection of the tax. In this instance, the owner of the auctioned item is responsible for collecting and remitting the tax. Auctioneers should refer to §3.311 of this title (relating to Auctioneers, Brokers, and Factors).

...(10) Taxable item--Taxable item means tangible personal property and taxable services.

(b) Who must have a permit.

...(1) Seller. Each seller who is engaged in business in this state, including itinerant vendors, persons who own or operate a kiosk, and sellers operating temporarily in this state, must apply to the comptroller and obtain a tax permit for each place of business operated in this state.

...(2) Out-of-state sellers. Each out-of-state seller who is engaged in business in this state must apply to the comptroller and obtain a tax permit. An out-of-state seller who has been engaged in business in Texas continues to be responsible for collection of Texas use tax on sales made into Texas for 12 months after the seller ceases to be engaged in business in Texas.

...(3) Direct sales organizations. Independent salespersons of direct sales organizations are not required to hold sales tax permits to sell taxable items for direct sales organizations. Direct sales organizations engaged in business in this state are responsible for holding Texas permits and the collection and remittance of Texas tax on all sales of taxable items by their independent salespersons. See subsection (d)(4) of this section for more information about the collection and remittance of tax by direct sales organizations.

...(4) Criminal penalties. A person who engages in business in this state as a seller of tangible personal property or taxable services without a tax permit required by Tax Code, Chapter 151, commits a criminal offense. Each day that a person engages in business without a permit is a separate offense. See §3.305 of this title (relating to Criminal Offenses and Penalties).

...(5) Non-permitted purchasers. Persons who are not required to be permitted still owe sales or use tax on purchases of taxable items from sellers who do not collect and remit tax that is due. See subsection (g)(9) of this section for return and payment information and §3.346 of this title (relating to Use Tax).

...(6) Failure to obtain a permit does not relieve a person required to have a permit from the requirements of this section or other applicable law to properly collect and remit sales and use taxes.

(d) Collecting tax due.

...(1) Bracket system.

......(A) Each seller must collect the tax on each separate retail sale in accordance with the statutory bracket system in Tax Code, §151.053. The practice of rounding off the amount of tax that is due on the sale of a taxable item is prohibited. Copies of the bracket system should be displayed in each place of business so both the seller and the customers may easily use them.

......(B) The sales tax applies to each total sale, not to each item of each sale. For example, if two items are purchased at the same time and each item is sold for $.07, then the seller must collect the tax on the total sum of $.14. Tax must be reported and remitted to the comptroller as provided by Tax Code, §151.410. When tax is collected properly under the bracket system, the seller is not required to remit any amount that is collected in excess of the tax due. Conversely, when the tax collected under the bracket system is less than the tax due on the seller's total receipts, the seller is required to remit tax on the total receipts even though the seller did not collect tax from customers.

...(2) Tax due is debt of the purchaser; document requirements. The tax due is a debt of the purchaser to the seller until collected. The amount of tax due must be separately stated on the bill, contract, or invoice to the purchaser or there must be a written statement to the purchaser that the stated price includes sales or use taxes. Contracts, bills, or invoices that merely state that "all taxes" are included are not specific enough to relieve either party to the transaction of its sales and use tax responsibilities. The total amount that is shown on such documents is presumed to be the taxable item's sales price, without tax included. The seller or purchaser may overcome the presumption by using the seller's records to show that tax was included in the sales price. Out-of-state sellers must identify the tax as Texas sales or use tax.

...(3) Criminal offense for not collecting tax due. A seller who advertises or holds out to the public that the seller will assume, absorb, or refund any portion of the tax, or that the seller will not add the tax to the sales price of taxable items commits a criminal offense. See §3.305 of this title.

Cary, Also..you realize the customers owe the $260 million right? Amazon owes fees and fines (if anything, still in court of course) not taxes. You get that right.

I'll say it again, consumers pay sales tax, regardless of how it is collected.

Cary, Also..you realize the customers owe the $260 million right? Amazon owes fees and fines (if anything, still in court of course) not taxes. You get that right.

I'll say it again, consumers pay sales tax, regardless of how it is collected.

Okay... 300+ teachers are being laid off in Allen, and Amazon has not been paying sales taxes since 2005, per state law, so the state legislature creates a bill to collect back taxes and Rick "I hate education" Perry, vetoes the bill.

By the way I just ordered a book from Barnes and Noble and they charge Texas Sales tax...I am boycotting Amazon until they follow Texas Law. Right now Amazon as a company should face prosecution as far as I'm concerned... and Perry should be impeached for not doing his duty as the executive Law Enforcer as well... this sales tax with state location is nothing new.

I wonder how much money Amazon is giving to Rick Perry... he needs to be impeached.

Think Progress
After Gutting Education And Health Care Spending, Perry Vetoes Legislation Ending Amazon’s Tax Dodging

Star Telegram
In year's first veto, Perry kills Internet sales tax bill


Austin Statesman
Perry vetoes online sales tax bill, but measure may not be dead yet