Amazon + warehouses = NJ sales tax

[Maksim 1,504]

On the tax issue... you guys do know that legally you have to pay taxes already for all the untaxed out of state Internet purchases right?

 

The only thing that this would cause is Amazon would potentially have to collect the tax for you, instead of you promising to pay it at tax time.

 

This is a fantastic thing for NJ though for companies coming here to bring the jobs. It is that many more employees who will be reinvesting in the system, getting off welfare/unemployment.

[BlueLineFish 615]

For all those rah-rahing the jobs that this might bring - let's hope Amazon doesn't run the NJ facilities like they run some of their others:

 

http://www.mcall.com/news/local/mc-allentown-amazon-complaints-20110917,0,7937001,full.story

 

I have had jobs that sucked. Not saying its fair but if I had a family to support then I would do whatever. A lot of people don't think that way though and will just mooch off welfare

[SpacemanFry 51]

Again, what's your problem with seeing new business and more revenue coming into NJ? You must not pay taxes or have financial responsibilities. That's the only reason I can think of that would cause you not to care.

 

I fail to see how you even jump to that conclusion. So in your mind, just because I get raped I should want others to be raped too?

[raz-0 1,259]

On the tax issue... you guys do know that legally you have to pay taxes already for all the untaxed out of state Internet purchases right?

 

The only thing that this would cause is Amazon would potentially have to collect the tax for you, instead of you promising to pay it at tax time.

 

This is a fantastic thing for NJ though for companies coming here to bring the jobs. It is that many more employees who will be reinvesting in the system, getting off welfare/unemployment.

 

It's not necessarily good. Amazon warehouses have a pretty solid track record for high churn, firing with "cause" due to abusive workplace practices, OSHA violations, and pretty low wages that will probably leave most of their employees still qualifying for 90% of the government handouts they receive even if they are hired. It's about $12/hr, but good luck being employed for long. nThey seem to take lessons on how to screw over the workers form both wal-mart and best buy.

[siderman 1,139]

I have an issue with this, i purchased an angle drill from home depot online, the drill was shipped from ohio home depot warehouse but i was still charged sales tax clearly from an out of state sale..Just wondering if it is a way for these big co's to smuggle money?

 

if an on-line retailer has a store in NJ you're getting taxed- that simple. If Cabellas opens up in NJ-mail order will be taxed.

[axeman_g 128]

If Amazon is considering coming here, that to me means things are changing. In your mind when should companies stop leaving? It takes change to invoke change. I will again look to Detroit... it has been a ghost town for 30 years now... a shell of it's former self. Why, because people ignored the companies leaving and did nothing to change the leadership. Now that the leadership changed about 6 years ago.. thinks are possibly on the way up. But it is going to take 30years of incredible growth the bring Detroit back to where it was. I dont ever want to see NJ in the dumps that Detroit is... I dont like it here, but NOBODY deserves to live in a city like Detroit circa 1995. Eventually you have to just stop running and fight... and if you just sit and watch your going to get run over.

 

Umm obviously you misunderstand. I am saying the state is already there, and I applaud businesses that decide to leave this dump rather than supporting it. That's not an endorsement of the current anti-business practices in this state, on the contrary it's an indictment.

[Krdshrk 3,878]

Detroit needs Robocop

[DevsAdvocate 112]

I thought there already was an amazon warehouse in NJ...

 

There are... in Parsippany. I've received many Amazon Prime shipments within the 2-day period because of my proximity to that warehouse.

[this_is_nascar 162]

I fail to see how you even jump to that conclusion. So in your mind, just because I get raped I should want others to be raped too?

 

 

I'm not going to get into a pissing contest with you about this. Unless I read wrong, you have an issue with companies coming into NJ, adding jobs in NJ, thus increasing revenue to NJ. I have an issue with you having those issues. It's as simple as that. If I read incorrectly or misinterpreted your position, then I apologize. If not, than I stand by what I said. Have a great day.

[lunker 274]

Detroit needs Robocop

 

I work for Dick Jones.

[rdsmith3 19]

If Amazon is considering coming here, that to me means things are changing. In your mind when should companies stop leaving? It takes change to invoke change. I will again look to Detroit... it has been a ghost town for 30 years now... a shell of it's former self. Why, because people ignored the companies leaving and did nothing to change the leadership. Now that the leadership changed about 6 years ago.. thinks are possibly on the way up. But it is going to take 30years of incredible growth the bring Detroit back to where it was. I dont ever want to see NJ in the dumps that Detroit is... I dont like it here, but NOBODY deserves to live in a city like Detroit circa 1995. Eventually you have to just stop running and fight... and if you just sit and watch your going to get run over.

 

If Amazon brings jobs here, I'm happy for that. It is ultimately good for New Jersey.

 

However, I don't think the Detroit comparison is valid. Auto manufacturing jobs are skilled jobs; Amazon jobs do not require as much skill. This is oversimplification but Detroit turned into a ghost town for two reasons: 1) auto companies did not stay competitive with Japan, and also did not invest in education in Detroit (their future supply of labor); and 2) labor unions got greedy and negotiated contracts that are unrealistic and which drive up the cost of cars.

[halbautomatisch 60]

Amazon is looking at NJ for several reasons: 1) It's centrally located to major northeast cities, they will save a lot of money on shipping, especially for the people who decide on Dec 23 to do their Christmas shopping - the packages delivered from Boston to Baltimore will get there in one day shipping regular ground. 2) It's close to Port Newark, and once the new Panama Canal opens the large container ships full of the Chinese products we love so much here in this country will sail right to Port Newark instead of unloading in CA and shipping cross country by rail. 3) Christie has declared NJ open for business, and they are betting they can get a better deal out of him than anyone else in this region.

 

Any new business brought into NJ is a good thing. The sales tax situation will suck for us NJ residents, but that's going to change sooner rather than later nationwide anyway, the states are all broke, they're going to push the sales tax collection issue because they need the money and shopping habits have changed from the old days.

[Secret Squirrel 3]

The taxes would suck, I buy everything on Amazon

[JackDaWack 2,895]

I don't disagree with the tax, like maks said u should be paying it either way... What ticks me off is when they make u pay sales tax and the item doesn't even shipped from NJ...like new egg. I'm an amazon prime member so yeah this stinks, but i got it half off this year, free last year. So i have saved a ton buying off amazon.

[Dan 177]

edit: Sorry missed... as Maks said....

 

Any out of state mail-order/internet order purchases in which NJ saletax was not collected, it is the responsibility of the purchaser to pay that tax withing 20 days to the NJ Division of Taxation.

 

If you purchase taxable merchandise from an out-of-state mail order or Internet business and no New Jersey sales tax is collected, you owe 7% use tax on the purchase price of the goods. Use tax is due within twenty days after the merchandise is delivered into New Jersey.

 

Here everyone, I'll post the link for the tax remittance forms here: http://www.state.nj....tion/su_5.shtml

 

Always happy to help!

 

PS - don't minus me please, this is me being annoyingly sarcastic..

[johnott 5]

The building of distribution warehouses has been approved. As reported today in the Courier-Post... Amazon.com will collect the state's 7 percent sales tax for purchases made in New Jersey starting in July 2013.

 

IMHO: Whether it's good for the state coffers is a moot point if those in the local and state government cannot control their spending. Also, it may add some jobs but in the grand scheme of things... it's a drop in the bucket compared to that which is needed to pull us out of the hole we are in. We really need more manufacturing jobs not just short term construction projects. (Jobs are temporary, taxes are forever.)

 

(I am not opposed to paying taxes.) But this state can't seem to get enough of our money and this is one more example of how 'aggressive' they are when it comes to taxes. The tax burden levied on businesses was one of the main reasons we lost so many jobs in the first place. Companies left NJ in droves. (Residents too).

 

My assumption about the Amazon deal is:

NJ gave Amazon a sweetheart tax deal in exchange for building their warehouse's here. NJ is hoping to recoup any losses though projected sales tax collections. This presumes that most people in NJ do not pay their sales tax for online purchases and therefore NJ would get a windfall of new tax revenue. If they are wrong in their presumption and most people do pay these taxes or if people no longer purchase from Amazon to avoid paying such taxes then they will not collect the necessary tax money projected which may (in effect) create a loss of tax revenue balanced against any reduced tax rate given to Amazon. And depending on the location of these facilities a large portion of the workers may end up being from PA, NY, or DE and not NJ residents at all.

 

Of all the businesses they could woo, of all the ways they could create jobs, ...this is the best they could do? Sorry if I don't stand up and cheer, but I'll reserve my applause until I see the final result.

 

Cheers to all.

[RubberBullets 65]

End result: I will be mindful of shopping for the best online price. Amazon has been a good start and a usual end for bottom line pricing on goods in the internet. Now, that 7% will be factored into my purchase, believe me I would rather choose the retailer out of state that comes close over this wonderful state taking anymore of my money.

[NJDrew1 0]

This state needs jobs. State might not get sales tax right away but you get real estate taxes, payroll taxes plus more people with jobs spending money.

 

Yep. Just more money for the politicians at the State and local level to squander. You don't seriously think that the taxpayers will see any of the windfall, do you? Let me know how you make out with that. Not only will we not see a windfall, but we'll get screwed on sales tax as well.

[NJDrew1 0]

The building of distribution warehouses has been approved. As reported today in the Courier-Post... Amazon.com will collect the state's 7 percent sales tax for purchases made in New Jersey starting in July 2013.

 

IMHO: Whether it's good for the state coffers is a moot point if those in the local and state government cannot control their spending. Also, it may add some jobs but in the grand scheme of things... it's a drop in the bucket compared to that which is needed to pull us out of the hole we are in. We really need more manufacturing jobs not just short term construction projects. (Jobs are temporary, taxes are forever.)

 

(I am not opposed to paying taxes.) But this state can't seem to get enough of our money and this is one more example of how 'aggressive' they are when it comes to taxes. The tax burden levied on businesses was one of the main reasons we lost so many jobs in the first place. Companies left NJ in droves. (Residents too).

 

My assumption about the Amazon deal is:

NJ gave Amazon a sweetheart tax deal in exchange for building their warehouse's here. NJ is hoping to recoup any losses though projected sales tax collections. This presumes that most people in NJ do not pay their sales tax for online purchases and therefore NJ would get a windfall of new tax revenue. If they are wrong in their presumption and most people do pay these taxes or if people no longer purchase from Amazon to avoid paying such taxes then they will not collect the necessary tax money projected which may (in effect) create a loss of tax revenue balanced against any reduced tax rate given to Amazon. And depending on the location of these facilities a large portion of the workers may end up being from PA, NY, or DE and not NJ residents at all.

 

Of all the businesses they could woo, of all the ways they could create jobs, ...this is the best they could do? Sorry if I don't stand up and cheer, but I'll reserve my applause until I see the final result.

 

Cheers to all.

 

This bonehead move will just force people to shop elsewhere on the internet with a company that doesn't have a nexus in NJ. If Amazon was smart, they would just build their warehouses in a state that doesn't have a sales tax. Everybody wins.

[checko 180]

Looks like all my purchases will be shipped to my moms in staten island.

[KpdPipes 388]

This state needs jobs. State might not get sales tax right away but you get real estate taxes, payroll taxes plus more people with jobs spending money.

 

Except that the Local Towns (ie Politicians) will give all sorts of cushy tax breaks to get them there, and you wont actually SEE the Ratables for years.

[Shawnmoore81 623]

yeah ill probably stop ordering from them as much too.

[HarryLee 0]

I used customer service a few times & I swear these people sound like they are overseas, with the broken English.

Hence, they are already offshoring American jobs.

I only use them if I can't find it locally.

[greatgunstatenj 32]

Jobs wise this doesn't do squat for NJ. NJ needs good jobs not low paying, sweatshop type jobs. Still, something is better than nothing but no reason to write home about it. The tax revenue will be huge because Amazon makes up approximately 1/4 th of all internet purchases in NJ. Will the asshats running this state spend it wisely...of course not. Will the average citizen benefit from this...not much.

 

I don't know where Amazon's fulfillment centers are currently located but when I order something I typically get it in 2 days or less with regular ground shipping. I'll still order from them if they have something I need at a good price.

[raz-0 1,259]

I hope not. Who the hell would voluntarily open a business in this hi-tax state that did not require face-to-face interaction? It's one thing to open a walk-up store here. It's another to open a warehouse for an internet site where a small minority of customers are from the area. Lets hope Lou Greenwald's general douchiness scares them away.

 

Doesn't matter, even if they don't build them, signing the deal means they have to collect the sales tax starting next year. Newegg opened warehouses here without the world ending.

[Melgamatic 66]

yeah ill probably stop ordering from them as much too.

 

Hey! We agree on something!

 

I think Amazon was going to end up getting sued by NJ and be forced to collect sales tax. This is happening with them and several other states. By making this deal with NJ, they still have to start collecting NJ taxes but get a good location for a distribution center and a tax break. So, probably a smart move on Amazon's part that doesn't change their sales tax profile (since they were eventually going to have to collect NJ taxes) but gets them a good location.

 

Many very, very large internet companies go to enormous lengths not to do any business in states like NJ, to avoid collecting taxes. For example, Tire Rack won't even allow a Tire Rack banner to be flown at races at NJMP that they're sponsoring! They are afraid a court might consider that "doing business in NJ" and force tax collections on them. It's crazy.

[Recon Racoon 49]

I thought there already was an amazon warehouse in NJ...

Just over the Delaware Bridge. Its like a 10-15 minute drive from my front door.

 

I'm not happy about having to pay sales tax, but honestly if it brings jobs here, then its a good deal. And just because not many people here buy from Amazon doesn't mean the warehouse won't be used as a hub to ship to say like Maine, or something. Plus different warehouses have different stock.

[JackDaWack 2,895]

Doesn't matter, even if they don't build them, signing the deal means they have to collect the sales tax starting next year. Newegg opened warehouses here without the world ending.

 

As a result of newegg having a warehouse in NJ, i now go to microcenter. I get everything i needed cheaper, and don't have to wait.

[hd2000fxdl 422]

Actually when you think of it, I always compare price by seeing what the total cost is to my door, doesn't matter if the base price is lower at one place, or free shipping, or no sales tax, I usually just compare one store to another and so on and see what the bottom line pricing is overall and make my decision from there.

 

Now really, for the folks who said, forget Amazon because of the sales tax, what if even with that they are still the cheapest, are you really going to go someplace else just because??

[Sandy 44]

Yeah , you are suppose to pay the tax anyway. Like Maks said.

 

I worked for a distribution place for 10 years. We had tons of out of state customers from all over the US who used us just because we did not charge them tax. I use to explain to my customers that they are still responsible , only difference is I don't charge it up front. Well , some paid quarterly and asked me for all their purchase records so they could do their taxes..but most did not.

 

Then one day , a man in a nice suit came in and said we were being audited ..we had to show all of our sales , provide tracking numbers , show who we sold to and where. A buttload of people who bought from us got ROYALLY screwed because they had spend about 300 grand a year with us , but never paid taxes.Even people from out of state who bought maybe 2K worth of stuff in a year got a notice and request for more info too .

 

If you do a lot on Amazon or any place out of state that does not charge you tax..either itemize it , or be prepared have to 'splain yourself one day.