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before charging customers' credit cards.
(AP Photo/Paul Sakuma)If you've been shopping around the Web's top retailer Michael Kors Purses White
This week she helped her mom buy new furniture on the site to beat the tax deadline. "I put the pressure on," Robinson said.
The state Board of Equalization, which collects California sales taxes, has pointed out that everyone has always been required to add sales taxes to their purchases from Web only companies. But only 0.42 percent of California income tax filers in 2009 actually did that, led by Santa Clara County, which had a compliance rate of 1.03 percent. The new law requires Web only stores to add the sales tax Michael Kors Greenwich Bucket Bag Uk
"It's a pain, but honestly it didn't even occur to me that I wasn't paying tax," said 25 year old Diego Gonzales, a self described "Amazonaholic" who works in Oakland.
The state's tax collectors have ordered compliance from some 200 online only big businesses ones that sell more than $1 million in goods a year in California. This month, Overstock cut ties with its advertising affiliates based in California to get around a provision of the new law that only forces companies with California based affiliates to charge sales taxes.
State officials, meanwhile, were eager to pass the legislation as a means to Michael Kors Crossbody Bags Uk
Amazon on Wednesday wouldn't say if its sales have gone up in the run up to the law taking effect.
for a new TV, jewelry or refrigerator, you might want to know that the price goes up on Saturday.
That's when California's "Amazon tax" kicks in, requiring Internet only stores to start charging sales tax.
"Even if I had to pay tax, who cares?" MacNeil said. "It's still a win for me."
"People would come into Best Buy and do all their research on their TVs and then go order a big screen TV off the Internet and save a couple hundred bucks on sales tax," said Bill Dombrowski, CEO of the California Retailers Association.
While most Amazon shoppers said the sales tax wouldn't affect their loyalty to Amazon, some say they might do a little extra shopping around for a bargain.
The sales tax rate you pay will depend on what shipping address you list for the item, though the statewide average is 8.25 percent. It can be as low as 7.25 percent in some parts of California, but in the Bay Area, it ranges from 8.25 percent in most of San Mateo and Contra Costa counties to 9.25 percent in Union City and El Cerrito. Amazon says it won't charge sales tax to someone from California buying an item to ship to states like Oregon that don't have a sales tax.
"It's almost kind of a panic feeling: Do I need to make some big purchases now?" said Shelly Robinson of Oakdale, a stay at home mom "obsessed with Amazon."
Amazon warehouse boom part of plan for one day (or same day!) shipping
Big businesses supported the move in California after passing similar legislation in New York, Illinois and elsewhere en route to ongoing talks over a nationwide law. They say it's a fairness issue.
help cash strapped governments. Officials expect to collect more than $300 million a year from the sales taxes, with about half of the money going to the state's general fund that pays for things like education and aid to the poor. Local governments also depend heavily on sales taxes to provide services such as police and fire. But "the most important part is our fairness to our California businesses, (and) we will have a little bit more revenue when our schools need every bit we can give them."
get ready for 'Amazon tax' to take effect in California Saturday
Good Morning Silicon Valley
Historically, Web only companies such as Amazon haven't charged sales tax. But companies that sell online and also have a "physical presence" in the state such as Apple (AAPL), Target and Sears have charged the tax on Web purchases.
The new law was passed last year after a bitter Michael Kors Handbags Marshalls battle between Seattle based Amazon and California leaders. It is designed to give governments around California hundreds of millions of dollars in much needed new revenue, while leveling the playing field with brick and mortar businesses.
Added 31 year old Holly Sickinger, of Redwood City: "They're not going to lose my business. I would just be a very disappointed customer."
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