What’s the difference between these two T.V.s?

March 25, 2011

If one of them was purchased from Amazon.com, the answer, according to the Alliance for Main Street Fairness, is “sales tax.” 

According to the Chattanooga Times Free Press, the Arlington, Virginia based retailers’ group is running a series of ads intending to call out what it deems to be the basic unfairness of allowing a large retailer like Amazon to sell goods without sales taxes. 

Amazon is able to routinely sell products without regards for state sales tax based on the 1992 U.S. Supreme Court decision Quill Corp. v. North Dakota, which held that a state cannot compel sales taxes on sales from a retailer which doesn’t have a physical presence within the state.  Because Amazon is opening up a distribution center here in the Chattanooga area, it will soon have that physical presence which would allow the state to impose these taxes, should the state choose to impose them.  Tennessee is one of the nine states that have no income taxes, and most of its budget comes from sales taxes.

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Maucere Law Group LLC’s International Business Law Blog. Focusing on legal issues affecting U.S. and global businesses, cross-border transactions, and dispute resolution.

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