Busted: ‘Amazon Tax’ Backer’s Hypocrisy on Sales Tax Collection
by Capitol ConfidentialWal-Mart Stores Inc., the world’s largest retailer, has some dirty laundry to air. According to the LA Times, the top backer of so-called “Amazon Tax” laws itself fails to collect sales tax on items sold through its site and paid for via credit card transactions processed by the company– a practice that looks suspiciously similar to that of top online retailers with regard to sales made to consumers in states in which the retailers maintain no physical presence.
Indeed, CSN Stores, a Boston-based company that markets through Wal-Mart, and arguably Wal-Mart itself as an entity through which CSN sells, appear to be availing themselves of the exact same constitutional law protection as Amazon and Overstock. Sales tax on CSN products is only added to a Wal-Mart transaction where shipments of products bought through Wal-Mart are headed to Utah or Massachusetts, states where CSN maintains a physical presence. No sales tax is added to purchases made by Californians, even though Wal-Mart’s website is reportedly operated out of the Golden State.
This is despite the fact that under California’s new “Amazon Tax” law– for which Wal-Mart heavily lobbied– the retail giant would appear to be under an obligation to collect sales taxes in respect of CSN goods sold to Californians.
California Board of Equalization member Betty Yee, a proponent of the “Amazon Tax” law, considers Wal-Mart subject to the same obligations as Amazon, with an additional responsibility to act given Wal-Mart’s role in aggressively pushing the legislation.







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