Legislation to eliminate a tax loophole that allows online businesses to not collect state sales taxes sailed through the Virginia Senate today.
The so-called “Amazon loophole” bill — Senate Bill 597, sponsored by Sen. Frank W. Wagner, R-Virginia Beach — cleared the chamber on a 34-6 vote and now heads to the House of Delegates.
The legislation was lobbied extensively by groups representing Virginia retailers who said the loophole gives online businesses a competitive advantage. In effect, it would require Internet businesses with bricks and mortar facilities in Virginia to collect the state’s five percent sales tax on their transactions.
Amazon has a warehouse and data center in Virginia and plans to open two distribution centers in the state under a deal struck with the administration of Gov. Bob McDonnell that provides more than $4 million in state aid. The state and Amazon are still in negotiations.
Is the Senate undercutting Governor McDonnell’s efforts with Amazon? Do they not see this political move as increasing the taxes of Virginians?
I do a lot of business with Amazon. I bought in to their Amazon prime program and all shipping is free if Amazon fulfills the order. The cost of the program is $79 and I feel certain I have gotten my money’s worth already. Another nice feature comes with the deal. There are thousands of free streaming movies and TV programs. You can watch on your computer or if you have a roku box, you can stream to your TV. Anything I can get from Amazon, I do. However, I rarely shop in stores so they are undercutting other online stores in my case.
Making Amazon.com subject to state sales tax increases my taxes. That’s pretty much the nuts and bolts of it. Who do I send the thank you note to? Which politician will have the nads to show up at a political rally and say they didn’t raise taxes? They need to be called out on this one. They are raising taxes on a lot of Virginians and it is both parties.
Shame Shame Shame. If Amazon is going to give $4 million a year in state aid, then it isn’t squeaking by, not doing its fair share. It currently is exempt. Too bad it looks like all that will change.
What’s wrong with it? You get free “streaming movies and TV programs” You get free a lot of things, it seems.
Are you against the tax because Amazon benefits you personally or ….
“They are raising taxes on a lot of Virginians…”
Well, sometimes it’s necessary to raise taxes. Isn’t it?
The tax that really bothers me, is the tax on food. THAT is an unfair tax IMHO.
Right now, anything I order from Amazon is not taxed. Yes, I am against it because it affects me personally.
Yes, sometimes it is necessary to raise taxes. My gripe is, taxes will be raised and I bet the champion of this bill will go around bragging that he voted to not raise taxes.
Massive upheavels like this affect many people and it does, in effect, raise our taxes.
I just plugged what a good deal Amazon Prime is.
I think that technically, you are supposed to pay taxes on catalog and online sales. It was one of the questions on my State TurboTax when I filed. But the requirement, I suppose, is on the purchaser and not the retailer.
I’m sympathetic to the bricks and mortar retailers’ arguments. Not having to pay tax for purchases is a competitive advantage for retailers who don’t have a presence in the community or pay any of the business or local taxes either. I would still make purchases online even if I had to pay local taxes (Talbots, anyone?) because I can order exactly what I want in my size — something that bricks and mortar retailers don’t always offer.
Bastards.
It’s getting harder and harder to avoid the revenuers.
@marin, that’s what it feels like. It feels like Virginia is undoing its agreement with Amazon. I am not defending Amazon as much as I am defending me. My taxes are being increased. Everyone else whines about tax increases. Now I want to whine about it.
Thunder Road! Robert Mitchum style.
The point remains that taxes are being raised. I feel certain that every one of the legislators who vote in favor of closing the loophole (despite agreement with Amazon) will vow and declare that they did not vote to raise taxes.
They will be lying. They raised MY taxes.