Amazon: Let's Play Diversion

Sun, 04/29/2012 - 04:53 EDT - Seeking Alpha

By Karl Denninger: This is going to get good.As everyone is by now aware Amazon (AMZN) had "blowout" earnings [see transcript], sending the stock up $30, or 15% to $226.85. As one of the "high-flying darlings" of the world today they're a great stock to own right here and now, right?Not so fast.Buried in the rah-rah was the fact that the company agreed to collect and remit Texas sales tax, as they have facilities (warehouses) in Texas. Amazon has been quietly reaching these deals of late, and will be collecting and remitting tax in 12 states, making up ~40% of the population, by 2016.The problem Amazon has is part of the "law of large numbers." Long-standing law says you need "nexus" to be forced to collect and remit sales taxes. "Nexus" is defined as some sort of business presence or connection to the state in question; without it thereComplete Story »

Original article
Login or register to post comments

Universal Online Sales Tax Imminent?
That Congress has had aspirations on collecting sales tax on online purchases, which comprise an increasingly bigger portion of all retail sales in the US, in the past is nothing new. However, following last night's passage of the Marketplace Fairness Act in the Senate with a cloture-busting 74 votes for (and 20 against), the US may be very close to finally adopting a uniform standard taxing all online transactions, regardless of physical jurisdiction or any other geographic boundaries.
Amazon.com’s Texas tax break in doubt
The 2011 Special Session of the Texas Legislature came to a close yesterday. Among the bills passed and heading for Gov.
Price Matching Is Synergistic With Sales Tax Collection
By Paulo Santos:This is a rather simple thesis regarding Best Buy's (BBY) new price matching initiative, which will enter into effect on March 3. Basically, price matching is synergistic with the new rules calling for online retailers to collect sales tax.
States and big-box retailers to Amazon.com: Pay up!
Last month I wrote about Amazon.com‘s hasty exit from Texas when presented with a bill for $269 million in uncollected sales taxes (
Seems Like Amazon Is Disregarding Georgia’s Efforts To Collect Sales Tax
(frankieleon)
Further Confirmation Of Sales Tax Impact On Amazon.com And Other Matters
By Paulo Santos:In a Reuters piece today, we got further confirmation of something I've been saying all along: That sales taxes matter, and Amazon.com (AMZN) is going to see an effect from having to collect them.
New Law Will Try (And Probably Fail) To Make Amazon Collect Sales Tax In Georgia
(ash)
The Market Can't Have It Both Ways Regarding Amazon And Best Buy
By Paulo Santos:Three things tell us that the Street has changed its mind regarding Best Buy (BBY). These are:
Retailers Love Latest Attempt At Online Sales Tax Law, eBay Not So Much
If this bill passes, lots of you will be sad to see taxes showing up on your Amazon invoices.
Amazon Softens Stance on Taxes
Amazon reached an agreement with Texas to begin collecting sales taxes in the state and appears to be backing away from its long-held opposition to tax collection in states where it has warehouses and other facilities.

Main menu

Secondary menu

Amazon: Let's Play Diversion

Related

Latest

User login

Our Blog

Markets Map

Follow Us

Secondary menu