Ladies and Gentlemen. Grab your mouses and get ready to add to the shopping cart to make your online purchases. If you live in California, you will start having to pay sales tax on online purchases starting on September 15, 2012. This can be anywhere from 7.25% to 9.75%, depending on your zip code.
As you know, California is so close to being broke, they need all the tax revenue they can get. California is estimating that online sales tax will result in an additional $317,000,000 in annual revenue. More than $83,000,000 from just Amazon.com alone.
The reality is that this day was coming since they passed the bill that allowed Internet only companies to not charge taxes. The brick and mortar retails stores were angry and as they struggle in this economy, they wanted an even playing field. Now they will get it.
All in all, there are some good things about this change. Because Amazon will no longer have to avoid having a brick and mortar presence, they will be building centers in California that will mail out items more quickly. That also means about 1000 more much needed jobs in California. I loved the free run we all had but the time has come to add “no online tax” to stuff you tell your grandkids about. And yes, I made my last minute purchases.