Amazon Wants To Protect Its Pricing, But At What Cost?

What is the battle to avoid paying sales tax in states where it has a physical presence doing to the Amazon brand?

According to The New York Times, the standoff between Amazon and California is simple: the state passed a law at the beginning of the summer requiring online retailers with a physical presence in the state to collect sales taxes. Amazon denies that its subsidiaries in the state, which include a unit that designed the Kindle, constitute such a presence.

Amazon is working to bring a referendum to the ballot, but there’s a question as to the legality of that approach. Meanwhile, Golden State legislators are working up “emergency” legislation to block Amazon’s work around.

“We’re not doing this lightly,” said State Senator Loni Hancock, a Berkeley Democrat. “But it seems like Amazon doesn’t really care about the State of California or the people whose lives are affected by whether or not we have enough money for schools and roads and to keep the libraries and parks open.”

What does this mean to you? Some Californians are boycotting the company? Is that something you might consider, as well?

In other Amazon news, the company is redesigning its long unchanged website ahead of its rumored tablet launch.



About David Burn

I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. Today—after working for seven agencies in five states—I am head of brand strategy and creative at Bonehook in Portland, Oregon.