Tax & Accounting Blog

Some Californians Spend Big Online Before New Sales Tax Begins

Indirect Tax, ONESOURCE, Sales and Use Tax, Sales Tax Calculation, Sales Tax Nexus September 11, 2012 and other Internet retailers will begin collecting sales and use tax on purchases by California residents beginning Saturday 8 September 2012. Seeing the tax increase coming, many tech-savvy consumers are trying to cram in some last-minute tax-free shopping.  Depending on where they live, Californians pay 7.25 to 9.75 percent in sales taxes, making these tax savings substantial. Especially on big-ticket items, such as electronics, appliances, software, etc. Bargain hunters are also stocking up on inexpensive goods ranging from food to carpet cleaner. The tax revenue from these online sales moving forward is being lauded as a win for the state, which has been mired in debt. Estimates project the state will see an additional $317 million annually and $83 million of that is expected to come from Amazon alone. It’s also a victory for brick-and-mortar retailers, which have long complained about what they called Amazon’s unfair sales-tax advantage.

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