Best Buy Backs California Internet Sales Tax

Best Buy said Tuesday that it supports the recently-enacted Internet sales tax passed in California. The law caused Amazon to drop all of its affiliates in that state.

“The new law includes provisions that will require online and other remote sellers to collect and remit California sales tax if they use in-state affiliate sellers or have substantial ownership of subsidiary companies or operations located in California,” the retailer said in the unsigned statement.

“The sales tax is already collected by traditional brick-and-mortar retailers on purchases.”

Comments
  • Ed Podowski

    UMMMMMM! I wonder what could motivate a national retailer who has a presence in all states which is required to collect sales tax from all their customers either online or instore to back the California Internet Sales Tax law?

    Hey folks! Best Buy is not doing this out of the goodness and fairness of their heart. This law levels the sales tax requirement for Best Buy customers vs Amazon customers in all the states both companies operate. Best Buy just put thousands of people out of work who depends on their affiliate income. Way to go Best Buy. I haven’t purchased anything at Best Buy for months and I will continue that trend.

  • Wil Vitela

    I completely disagree with Ed’s comments. There are so many reasons why collecting sales tax from internet sales tax is long overdue.
    1. As more and more people choose to purchase online from internet sellers out of state, California continues to collect less revenue whereby forcing the state to charge fees or raise taxes to Californians to make up the difference. We are in a debt crisis and as a Californian I rather that we should collect what the state is entitled to instead of forcing everyone to pay more for the people that want to contribute to our declining revenue. Let’s make the rules the same for every business and level the playing field.
    2. California sales tax is close to 10% in areas which gives an unfair advantage to out of state sellers which cause our local businesses to lose millions of dollars in sales.
    3. Affiliates generally do business out of there home, office, or single location where they operate on such a low margin while using a major third party distributor to fulfill the order, which causes customer service, technical support, return policy, warranty claims, etc. to suffer because they can not afford to built that into the price of the item. In turn the manufacturer gets the sale but in the long run risk damaging their market share due to minimal service. Customers do get what they pay for but quite honestly its difficult to see that when you are trying to get the best deal and there is a significant difference on higher cost items especially because the sales tax is not being charged.