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Californians Stock Up on Amazon's Last Tax-Free Day

New sales taxes kick in tomorrow

By Matt Cantor,  Newser Staff

Posted Sep 14, 2012 5:29 AM CDT

(Newser) – It's a big day in California—the last one without sales tax on purchases from Amazon. So customers have been snapping up items like there's no tomorrow, the AP reports. With packages arriving at his office every day this week, "even the mailroom is laughing at me," says a Los Angeles man. The new taxes follow a deal between Amazon and the state; a planned grace period ends tomorrow. For the company and for Californians, however, the sales tax actually offers some advantages.

Amazon had argued that because it didn't have a physical presence in California, it shouldn't have to charge sales taxes. With those taxes on the way, however, Amazon will start opening warehouses in the state—and that means same-day shipping for many. "For me, most my friends and family, same-day delivery could be a big blow to our retailers down the street," says an online shopper. Local retailers, however, are hoping the new taxes limit "showrooming," in which customers shop for a product locally, then buy it online.

Reid Butler plays with his daughter Siena, 2, as they pose with recent online purchases from Amazon at their home in Walnut Creek, Calif.
Reid Butler plays with his daughter Siena, 2, as they pose with recent online purchases from Amazon at their home in Walnut Creek, Calif.   (AP Photo/Jeff Chiu)
In this 2010 file photo, Ricardo Sandoval places packages in the right shipping boxes at an Amazon.com fulfillment center, in Phoenix.
In this 2010 file photo, Ricardo Sandoval places packages in the right shipping boxes at an Amazon.com fulfillment center, in Phoenix.   (AP Photo/Ross D. Franklin, file)
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COMMENTS
Showing 2 of 4 comments
MisterPlinkett
Sep 14, 2012 7:01 AM CDT
Well, this will ultimately hurt Amazon's business as people will now seek out other places to buy stuff to avoid paying the ridiculous state sale's tax. and why should people be forced to pay extra taxes?  we're in the hardest economic times since the great depression and now the gov't wants to gouge its citizens even more. hey cali, ever think about just drastically cutting the size of your bloated gov't?  of course not...gotta prop up bureaucratic while killing business. ...this applies to most states and especially to the federal gov't, btw.
nick
Sep 14, 2012 6:16 AM CDT
Don't mess with Jeff Bezos, he is smarter than you ... and probably everyone else!
 

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