What is the Amazon.com Sales Tax Battle About?

You may have seen the news that Amazon.com is currently battling many state department of revenues as to whether or not they have to collect sales tax on sales in those states.  The hot battle of the moment appears to be in California.  Amazon is evening pushing for the issue to be placed on the ballot for the next California elections.  What is the battle over, you might ask?  Obviously, money.  Amazon does not want to have to collect the sales tax because it destroys some of their price advantage over brick and mortar retailers.  The states want their fair share of tax revenues.  Did you know that most states require you to pay sales tax on online purchases if you did not do so through the merchant?  If everyone were in compliance with that this would be a moot issue.  Obviously, everyone is not in compliance.  If you would like to learn about how to get into compliance or have any questions, feel free to contact your Wilmington, NC CPA.