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Monday, April 23, 2012 | 4:31 p.m.
Brian Sandoval
Gov. Brian Sandoval reached an agreement with online retail giant Amazon to collect sales tax on items it sells in Nevada, raising at least $16 million a year and tacking on 8.1 percent when Las Vegans hit the “checkout” button online.
The agreement, announced Monday, calls for the retailer to start collecting the sales tax in 2014 or whenever the federal government passes legislation requiring online retailers to collect the taxes.
Under a similar agreement with California, the company will start collecting sales tax there in September 2012.
Traditional brick-and-mortar retail stores have complained that online sellers have an unfair advantage because many don’t charge sales tax and aren’t paying their share for schools, roads and other government services.
Individual buyers are supposed to send in the sales tax to the state Department of Taxation.
Sandoval’s office said this deal would help in “relieving Nevadans from having to self-report use taxes from these sales to the state.”
The sales tax rate in Nevada varies by county, from 6.85 percent in some of the rural counties to 8.1 percent in Clark County.
Sandoval and Amazon, which has major warehouse and distribution centers in Northern and Southern Nevada, said in the statement that they would work jointly for federal legislation.
The Retail Association of Nevada has advocated for legislation requiring all online retailers to collect sales and use taxes. It estimated that the change to state law would bring in $26 million every two years.
“We’re very excited about this” agreement, said Bryan Wachter, director of public and government affairs for the Retail Association of Nevada. He praised the governor for working with Amazon. “It’s important to treat everybody by the same rules,” he said.
NewEgg. no tax.
Governor, this sucks! How about this, we turn all of our earnings over to the state, and you can decide what you think we deserve to keep!
And so, Nevadans working at Amazon may lose jobs because of an 8.1% across the board price hike on goods.
With so many other online choices, choices that do not charge tax, I'll buy else where. As a consumer, why would I want to pay 8.1% more when I don't have to do so?
so ummmm he raised taxes. Very Dem of you. How's that mining agreement coming gov?
I used to love Amazon.
Brick and mortar are now viable again.
The eversucking noise of government waste.
A Republican Governor implementing an 8 percent hike in COGS. That's cost of goods sold for you union people. Hey you libs, still hate the guy now. I know I do. So unnecessary. Kiss the tail of a few and piss off everyone.
I swear he promised not to raise taxes. Vote him out next time.
It's telling that Governor Sandoval put so much time and effort toward this and has done NOTHING to address the lack of a business, mining and gaming tax that is equitable.
"Hey you libs, still hate the guy now."
yep --- but still not as much as arrogant arses.
"I swear he promised not to raise taxes."
he didn't raise the taxes of his pals so calm down. you're just one of the little people so pay up and move along.
It's amazing how making everyone play on a level playing field can be turned into a liberal or conservative issue.
If you're going to tax business, tax it evenly and fairly. I'm pleasantly surprised by Sandoval. He's acting like what we need-- a pragmatist. Someone who is less concerned about ideology than doing what is right for the public. Depending on who the dems put up, he might just get this liberal vote.
All social theft (taxation) should be criminalized.
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Amazon will put out of Nevada now.
"Someone who is less concerned about ideology than doing what is right for the public."
when Gov. Sunny makes -- neh, even suggests, mining pay tax on what they report in their shareholders report then I'll believe that statement. until then ....
I will say he's head and shoulders better than Givons. By any measure.
Remember you brain dead republican voted him in!!
Republicans are not for children,not for men and NOT FOR especially women, not for the middle class,and hate the poor..
They are for The banks, wall street, fat cats and big Oil and electric and gas companeies.
Republicans party- Money is what they really worship, not christ or god
REPUBLICANS party -NOT FOR THE PEOPLEs
Let me see if I get this right. My Amazon purchases are going up 8.1%, and just about everything I buy I purchase through Amazon- great customer service and free shipping with a prime membership. And, the illegals still pay no taxes, get free healthcare and other welfare benefits.
Is there something wrong with this picture?
I wonder why the governor hasn't raised tax on casinos. Every other state that has casino gaming collects tax revenue on a much higher tax rate than Nevada has for the casinos here.
I thought for sure this was going to come when they bought Zappos. Surprised it's taken this long.
"The sales tax rate in Nevada varies by county, from 6.85 percent in some of the rural counties to 8.1 percent in Clark County."
Isn't it just like me to quibble? That's not exactly true.
The maximum tax rate the Nevadan gaming industry pays for the services they sale at the gaming tables and slot machines is 6.75%
The mining industry continues to pay less than the minimum tax rate set by the Nevada Constitution nearly 150 years ago at a measly five percent.
Ask nearly any American citizen, but particularly Nevadans, which state receives the most general funds from gaming tax and you'll receive the same answer: Nevada.
But it's not Nevada; Nevada is a long shot off. It's Pennsylvania by $400 million -- 150% of the $800 million so grudgingly contributed to support the state that acts as its flagship jurisdiction.
Think about that: Nevada has 26 times as many casinos, yet Pennsylvania brings in 50% more gaming taxes. Sweet. So very sweet.
One only has to look at the gaming industries own reports to see the Nevada gaming companies have it really nice compared to other jurisdictions: the maximum gaming tax in Nevada is 6.75%, in Pennsylvania it's 55%. Nevada has 265 casinos, Pennsylvania has 10. Some people may need that spelled out for them in order to see the disparity: two-hundred sixty-five to ten.
In fact, Nevada gaming companies don't even rate second when it comes to the gaming taxes paid to the state. That distinction goes to Indiana.
Same goes for the mining companies who manage to pay even less than the outdated 5% they managed to get written into the Nevada State Constitution in 1864. 1864!!! That's 150 years ago.
How much effect has inflation had on the Nevada mining tax in 150 years? None. Zero. Nada. The mining tax has never been increased in 150 years. If anyone can provide examples of other industries that pay the same tax rate they paid 150 years ago many people would be interested to know them.
It's a fair bet by now that since the average American laughed down their neighbors who tried to make a difference with the Occupy Movement that the infamous one percent is laughing all the way from their new McMansion to the bank in a new luxury sports car -- if their chauffeur has the day off.
The people who laughed down their neighbors for trying to make a difference? They are lucky if they can even afford a car if they still have one, or a house, or a job, or enough food on the table.
It would go a long way to increasing the middle class quality of life if the people in it decided now that next time someone tries to make a difference, even if they themselves elect not to participate, they won't make it any more difficult to try to change things than it already is.
Chunky says:
Uncle Sam digging his way into our pockets deeper and deeper every day!
When will it ever end? Never, until they basically just tell us what we can have!
That's what Chunky thinks and he thinks it sucks!
The number of false statements in the comments to this article is staggering, yet unsurprising given the comment base of the Sun. Several examples:
1a) "so ummmm he raised taxes."
1b) "I swear he promised not to raise taxes."
The requirement for Nevada consumers to pay sales tax to Amazon is not a new tax -- it is providing a different mechanism to collect a tax for which the liability exists. Nevadans who make purchases on the Internet (or through any other venue where sales tax is not collected) are already liable to pay use tax to the state, at a rate equivalent to the local sales tax rate.
The people who are admitting that they avoid this tax (as well as the people who state they will simply move their purchases elsewhere to continue avoidance of the tax) are admitting that they are committing a misdemeanor pursuant to NRS 372.185 and 372.365.
2) ""The sales tax rate in Nevada varies by county, from 6.85 percent in some of the rural counties to 8.1 percent in Clark County."
"Isn't it just like me to quibble? That's not exactly true."
The maximum tax rate the Nevadan gaming industry pays for the services they sale at the gaming tables and slot machines is 6.75%
"The mining industry continues to pay less than the minimum tax rate set by the Nevada Constitution nearly 150 years ago at a measly five percent."
The two taxes you mention -- the net proceeds of minerals tax and the gaming tax -- are industry-specific taxes on income. Calling the article false for accurately describing the sales and use tax -- which apply only to the sale/use of tangible personal property, not to mining or gaming revenue -- is a ludicrous comparison.
As for the false statements about the mining tax, see #3 below.
3) "Same goes for the mining companies who manage to pay even less than the outdated 5% they managed to get written into the Nevada State Constitution in 1864. 1864!!! That's 150 years ago."
The current provisions setting the maximum net proceeds tax rate at 5 percent was put into the state constitution in 1989, NOT 1864. Prior to 1989, the tax was wholly a local revenue source, taxed only at the local property tax rate. Setting the maximum at 5 percent increased the rate, with the additional proceeds dedicated to the state.
Before 1989, the state received none of this tax -- only the locals did.
-----------------------------------------
Otherwise, the comments are rather telling in their unified theme -- lots of people are good at saying that only other people should be taxed, even when it's a tax that people should have already been paying in the first place.
"How much effect has inflation had on the Nevada mining tax in 150 years? None. Zero. Nada. The mining tax has never been increased in 150 years. If anyone can provide examples of other industries that pay the same tax rate they paid 150 years ago many people would be interested to know them."
Bye-Bye Amazon. You were great to us while you lasted. Too many other online stores to buy from....
I am not a supporter or fan of this governor. However, kudos for this because it helps each and every one of us.
There are three "steps" in the sales tax process. With brick and mortar retailers, the customer (1) pays the sales tax, and the retailer (2) collects it (what some refer to as the store "charging" sales tax). The retailer also (3) remits it to the state.
With an online retailer, two things might happen. One is that the process is identical, meaning the retailer collects and remits the sales tax. As before, the customer pays it.
The second thing that might happen is that the online retailer does not "charge" sales tax. It sounds like that was the case with Amazon. However, this does not change the current laws which require the user (i.e. customer) to pay and remit "use tax" (which is the same as the sales tax). In other words, you were already legally required to pay use tax to the state. Not many people actually do so, but it is the law.
This agreement with Amazon simply shifts the collection and remittance burden off of us and back to the retailer, but it has no effect on who pays it.
I don't want to be accusatory, but it seems to me that the angry commenters may all be guilty of tax evasion. Which means they are angry because either (a) they think this is a new tax or an additional burden on them, or (b) they can longer get away with evading the tax.
Oh yeah, I forgot to self report.
I will always buy from the Least Expensive. I don;t care about American Workers, Corporations, Taxes, Delivery Charges, etc... I want the cheapest at my Door and if a few people die because of it - who cares! And I'm No Different from the Casino or Mining Interests in Nevada.
So why has Amazon been CHARGING and COLLECTING Nevada tax on all the deliveries to my house? Is this FRAUD?
Will any portion of this sales tax be rebated to Zappos as part of their incentive package?
Another example of special interests winning out to what the majority wants. Most people do not want internet commerce taxed, hello. A tiny group representing a dying industry model does, they win.
and to those who worry about why Amazon gave-in, understand they now have a new cash flow producer. This tax revenue collected is now part of their cash flow equation. Not to mention a nice big fat foot into the door of the Nevada Governors office. Need some favors Amazon? zappos? no sweat we are now partners "with the community".
The only reason these people appear to run things is because we the people have allowed them to. If we do not want internet commerce taxed, lets decide now not to. Let's vote out this Governor who doesn't represent us and get one which does. Let's update old laws which don't work and move-on.
Well Sandoval is an idiot and just guaranteed he will not be re-elected. All of generation X and Y will hate him for this.
Freak out on the republican Governor republicans!
And drink the Romney kool-aid, that will help you stop thinking things like:
Will Romney go back on his word like Sandoval has?
;->
The question I have is, why there had to be an agreement? What did Sandoval have to give up to be able to collect tax?
I buy over $20,000 worth of stuff from Amazon because I use their "prime" feature that gives me free 2 day shipping / no tax on everything I buy. When they start to charge 8.1%, I will only use them IF the total price is lower than their competitors / shipping. 8% of 20K is $1,600. I sure the hell am not going to throw $1600 away (to bebe's mama or some illegal) when I can keep that money in my pocket. Simple as that. My guess is this will cause Amazon's (and any online retailer) to lose a ton of money when it is implemented which will mean lost jobs. So ....more taxes simply takes more from one register but will lose the same amount (or more) form another register. Pretty soon, we'll be as productive, industrious, and prosperous as the Russians. (pre glasnost)
Q. When will the US get around to building a border fence along all of it's borders?
A. When the US becomes a prison state - Marxist country. (to keep the people in)
Example: The Congress got around to "bankruptcy reform" right before the markets crashed, while things were good and everyone was making money. Think they knew the bubble was about to burst and everyone would be going BK?
Same with the illegals. They are allowing them to flood into our country knowing damn well the "American Dream" is about to become the "American Nightmare". They'll need scabs that don't give two chits about our Founding Fathers or our Constitution to keep the gov working when things hit the fan (dollar loses it's value, hyper inflation, civil unrest, new form of gov). If you think they reason both dems and reps let anyone enter our country and bankrupt our schools, social services, and hospitals is because they they like minorities, (well, maybe the dems), think again.
I degrees. Re taxes. Hey, Sandavol. Instead of raising taxes to fix our problems why don't you start enforcing immigration laws and follow the example of Arizona and Alabama? Make it harder for illegals to tax and burden our social services? Don't you believe in the rule of law?
Regarding anchor babies, "What about the kids born here?" I simply believe we should do what the law mandates. Until someone is 18, they are the ward of their parents, have to go wherever their parents go. PERIOD! When they turn 18, they can come back. I'd send all illegals packing, kids and parents. That would solve all of our financial problems and we'd even be able to lower taxes. Prisons would be half empty. The graffiti problem would be reduced by 80% or more. Crime, you guessed it, down by around 50% so we wouldn't need as many cops. We could then bulldoze the east side of town and replace it with parks, nice houses with big back yards, swimming pools, etc.
@MickeyA don't be so naive, the authorities love illegal immigration. They love the problems created. It is good for their business. Poor people from the third world are a profit centers for too many bureaucrats and their vendors. Maybe if Americans understood what drives this problem we could work on solving it?
Mickey: not sure how you got to this point in this thread but here goes: The 14th amendment AUTHORIZES the federal government to REGULATE immigration: We CAN have a regulation that does not confer citizenship when Mommy was here illegally and gave birth--the kids are citizens of mommy's country. Also note, Arizona (before SCOTUS) notes that CRIME IS DOWN massively with the illegals moving out after their state legislation to START controlling illegals.
psst. We wouldn't have to pay for K-12, ER's, incarceration...... and we wouldn't need tax increases.
I hate to break it to you, but if an illegal immigrant purchases something from Amazon, they'll have to pay sales tax too. I'm pretty sure there's no "check this box if you're an illegal immigrant" box when you check out at Amazon.com.