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Amazon Starts Taxing Californians September 15, 2012

Published on: July 26, 2012

Photos: Amazon founder, Jeff Bezos, and Amazon headquarters building in Seattle, Washington

If you buy lots of merchandise on the Internet and you live in California, plan your strategy and stock up on your favorites now before the September 15 agreement goes into effect, requiring Amazon to begin collecting California sales tax from California buyers and shoppers. Any sizable purchases or even Christmas gifts will begin costing you not quite 10% extra–but the tax really can add up. By shopping early before the sales tax kicks in on Sept. 15,  the average California shopper may save around $100-1000. Amazon previously dropped its California online affiliates when Governor Jerry Brown demanded the company begin collecting sales tax immediately. The company agreed to begin collecting tax this fall and build two fulfillment centers (with tax incentives) in San Bernardino and Patterson. The new model for Amazon is “speed of delivery” with the hope of getting merchandise to customers sometimes overnight. The price points and increase in prices may cause a drop in California customers who can purchase the same merchandinse elsewhere and even buy direct.

Check list:

  • Back to school items, clothing
  • Sports gear for skiing, surfing, boating
  • Needed staples such as computers, technology devices, etc.
  • Soaps, shampoos, colognes and personal care items–double up on your supplies
  • Christmas gifts
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