Wal-Mart vs Amazon in the Battle for Sales Tax

Twenty one different cash-strapped states have begun to look at the billions of dollars they are not collecting from out-of-state e-commerce companies selling to their residents.  They are beginning to have the fever dreams over that potential revenue source that being stranded on a desert island can produce in the minds of starving castaways – even your best friend can appear to you as a juicy frankfurter when you haven’t eaten in days.

The Economist frames the coming war over the “universal sales tax.”  The main front will likely be in California, where Wal-Mart ($WMT) is spending big and its rival Amazon ($AMZN) is already collecting signatures…

A TAX dispute as old as mail-order catalogues turned into warfare this month. Leading one army is America’s largest consumer market, California. Leading the other is the largest online retailer, Amazon. At issue is whether states can force out-of-state merchants to collect sales tax on purchases by in-state residents. This fight is national. But California, where such matters inevitably go to the ballot box, is likely to be its most spectacular front. Amazon and its lieutenants are already collecting signatures to call a referendum, probably next June, on the state’s new tax law, which went into effect on July 1st.

Are you selling or conducting commerce with out-of-state residents online?  Are you the vendor or supplier of a company that is based in another state?  The fallout from this struggle has the potential to mean major cchanges in the way America does business, this article is a good place to begin understanding the issues.



Tags: ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. eatverts.com commented on Sep 22

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2011/07/23/wal-mart-vs-amazon-in-the-battle-for-sales-tax/ […]

  2. golf course community commented on Sep 25

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2011/07/23/wal-mart-vs-amazon-in-the-battle-for-sales-tax/ […]

  3. 먹튀검증사이트 commented on Nov 07

    … [Trackback]

    […] Find More Information here to that Topic: thereformedbroker.com/2011/07/23/wal-mart-vs-amazon-in-the-battle-for-sales-tax/ […]

  4. axiolabs dbal commented on Nov 13

    … [Trackback]

    […] Find More here to that Topic: thereformedbroker.com/2011/07/23/wal-mart-vs-amazon-in-the-battle-for-sales-tax/ […]

  5. kids swimming commented on Dec 31

    … [Trackback]

    […] There you can find 14811 more Information to that Topic: thereformedbroker.com/2011/07/23/wal-mart-vs-amazon-in-the-battle-for-sales-tax/ […]