CalChamber, of which this Chamber is a member, takes an opposing view to that which I penned here in previous posts. So let's give their POV a look-see. They say passing an amended law that puts more teeth in the sales and use tax enforcement jaws would HURT small business, apparently because the online purveyors who benefit from it might retaliate and move out: Amazon.com, Overstock.com, et al. Take a look.
I'm not convinced, yet, and I'd like to see a careful analysis of the impacts of letting online purchases skirt taxes even as local retailers struggle from one of the highest such taxes in the nation. It's 9.75% in my neighborhood if I want to buy a frisbee, a flat screen or some other tangible thing. But online, hey - you can save 10% without leaving home!
The reason I'm trying to focus on the local impact of this State legislation is that one of our mantras is "shop local". When you do, a portion of your purchase will come back to you, right in your very own back yard! Meanwhile, I'm hoping the legislators look at a way to level the playing field by insisting that online resources also contribute to tax collection.
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