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

New sales taxes kick in tomorrow
By Matt Cantor,  Newser User
Posted Sep 14, 2012 5:29 AM CDT
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)
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(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. (Read more Amazon stories.)

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