Amazon caved. Orders from California will start being taxed this weekend, reports CNBC's Jane Wells.
"Even the mailroom is laughing at me," said Derek Daniels, 37, who has had Amazon packages delivered to his Los Angeles office every day this week. He's loading up on household supplies like trash bags, and on birthday and Christmas presents for his Superman-loving 2 year-old.
"We are hoping he won't fall in love with Batman by the time November rolls around," Daniels said.
The deadline spurred San Diego artist John Purlia to finally buy that Samsung flat-screen television that had been sitting in his Amazon shopping cart for months. He also picked up four CDs, an external hard drive and an oddly decorated $17.99 kitchen cutting-board — a gag gift for his sister.
"The TV was the motivating factor and the other stuff came along for the ride," said Purlia, 52. "I know I'm going to be back at Amazon before Saturday looking to take advantage of this. It's like the final days of a sale."
Technically, Purlia and Daniels owe taxes on all of this: California residents are supposed to calculate what they owe and send it directly to the state. But hardly any do.
As Amazon has grown in popularity, lawmakers have complained that it was depriving the state of millions of dollars by refusing to charge taxes at checkout. Amazon argued it was not obligated to collect taxes because of a 1992 U.S. Supreme Court ruling that prohibits states from forcing businesses without a physical presence in the state to do so.
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