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More States Eye Amazon Sales Tax Deal

Kelly Phillips ErbSeptember 18, 2011

So who didn’t see this coming?

With the ink barely dry on California’s internet sales tax deal with Amazon, other states are chatting up a similar idea.

Even states that were willing to sit this one out – like Florida – are beginning to talk. An Op-Ed in The Ledger is suggesting that California’s coup may give Florida business the impetus they need to convince state lawmakers to push legislation forcing Amazon (and other internet retailers) to collect sales tax in the state. Legislation that would do exactly that in the Sunshine State is currently stalled.

Those groups are clearly wondering whether taxing the retailer – and then asking for concessions in return for a break – is the way to go. After all, it worked for California, right?

But maybe this is all terribly calculated. And by maybe, I mean probably.

With states falling all over themselves to cut deals with the online retail giant, Amazon is suddenly the girl that everyone wants to take to prom. But she only has eyes for Congress.

Yep, it’s feeling more and more like Amazon is hoping to whip states into a frenzy over this sales tax issue that’s sufficiently large enough to get the attention of the folks in D.C. And in this allegedly pro-business, “no new taxes” climate, one of two things will likely happen:

  1. any deal that is struck in D.C. will be generally more favorable to Amazon than the individual states would/could provide; or
  2. Amazon is counting on the fact that it takes long enough to get things done in D.C. that it might effectively stall attempts by the states or the feds to collect.

And if I’m thinking it – me, of the mostly chirpy, annoyingly optimistic Pollyanna disposition – somebody else has to be thinking it, too. Am I right?

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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amazon, California, Florida, internet sales tax, internet-sales, Online shopping, sales-tax, Sunshine State, tax

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