Amazon Buyers in California Start Paying Sales Tax

Amazon.com consumers in California started paying local and state sales taxes as the largest Internet retailer started collecting up to 10 percent for each order in that state.
California this weekend became the eighth state to force Amazon to collect sales taxes, even in those states where the online giant operates warehouses.
California’s sales tax on Amazon orders is projected to draw $83 million in the next year.
To counter the impact and make shipping cheaper, Amazon is building huge distribution centers in California.
Eventually, Amazon hopes for same-day shipping in major cities.
Do taxes deter Amazon shoppers?
According to the Wall Street Journal, a new survey by Wells Fargo analyst Matt Nemer found that consumers in Texas, where Amazon started collecting online sales taxes in July, haven’t changed their habits too much.
Nemer found that among 1,000 Texans surveyed in September, 27 percent shopped regularly on Amazon.com, down from 30 percent in June. The margin of error is 3 percent to 4 percent.
Those surveyed said a lack of sales tax was less important than convenience.
However, in a broader survey of more than 2,600 people, Nemer found that about 33 percent said they would shop less if there were an online sales tax.
Amazon is set to begin charging online sales tax in New Jersey and Virginia next year, and in Indiana, Nevada and Tennessee in 2014.

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