Massachusetts has started to get a bit more insistent about collecting MA sales taxes on goods purchased out of state–including over the Internet. This year’s return invited me either to list the actual amount paid and pay the Massachusetts rate on the total, or to pay a “safe harbor” tax on my income. Pay the safe harbor rate and I am exempt from harassment for my out of state purchases, even if I get audited and it turns out I would have owed the state much more based on my actual purchases.
I found this annoying. But actually it seems to me correct. I don’t imagine people were paying those taxes until the safe harbor was introduced, and if I don’t like the safe harbor, I can keep track of all my Amazon purchases and whatnot and pay the 6.25% on those. I can object to the whole notion that stuff I buy out of state and bring or have shipped in state should be taxed, but until somebody changes the rules, that is the way the rules read.
Now the state of North Carolina has done Massachusetts one better and has handed its comparable tax collection problem to Big Brother. The state has demanded that Amazon turn over to its tax authorities detailed, itemized records of everything shipped to anybody in the state. (Amazon has no business address in North Carolina. Only customers are there.)
That’s a lot of data, but of course that’s not the problem. Amazon has it, not just for billing purposes but so it can pitch you different suggestions on rainy Tuesday nights if it notices that you particularly like ordering steamy romances on evenings like that. The granularity of the data is extremely fine, and the state wants it all. Amazon provided some anonymized information — not sure I am happy even with that, given how easily apparently anonymized data can be re-identified — but it doesn’t matter, because the state was not content with that. It wants names and addresses.
Amazon is resisting, thank goodness, on First Amendment grounds–citing individuals’ right to read anonymously. But aren’t there Fourth Amendment issues, too? Given constitutional guarantees of security against unreasonable searches, what possible justification could the government have for demanding to know the shoppings lists of ordinary citizens, not under suspicion of anything?