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Published: 2010-05-20 14:28:00
Updated: 2010-05-20 18:57:47

ACLU threatens to join Amazon customer privacy fight


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The American Civil Liberties Union of North Carolina is telling the state Department of Revenue to back off on a request for "constitutionally protected private information" of Amazon.com customers.

In a letter Thursday to Revenue Secretary Kenneth Lay, the group says it will join an existing lawsuit brought by the online retail giant if the department "persists in its demand" for North Carolina customers' names and addresses.

"If the department persists in its demand that Amazon now additionally provide detailed user information … the constitutional rights of our clients and tens of thousands of North Carolina consumers will be violated," the letter states.

Amazon filed suit in federal court last month to block the department's attempt to get the information of those who bought or received items from the company since 2003.

"The ACLU is not taking issue with the department’s authority to collect taxes on the value of these purchases, but there is no legitimate reason why government officials need to know which North Carolina residents are reading what books or purchasing which specific brands of products," Jennifer Rudinger, executive director of the ACLU of North Carolina, said in a statement.

According to its lawsuit, Amazon has already provided the revenue department with data about the purchases, including product codes that reveal the exact items purchased.

State revenue officials have called the lawsuit "misleading," saying they never asked the retailer to turn over detailed information that would reveal personal preferences.

Lay re-emphasized in a statement late Thursday afternoon that the department is not interested in consumers' buying habits.

"The department does need a general product description – for example, "book" or "food." That description is necessary to determine the rate of tax, because different items are taxed at different rates," he said. "The department does not require the identification of customers' choices of expressive material."

The information would cover about 50 million purchases, Amazon has said.

Because Amazon has no offices or warehouses in North Carolina, the company isn't required to collect the customary sales tax on shipments.

North Carolina requests voluntary compliance from taxpayers, asking them to include a "consumer use tax" on their individual income tax returns for anything purchased or received through the mail.

By some estimates, the state loses $140 million a year in unpaid taxes from online sales.


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htomc42, sometimes it feels that way. Income tax, sales tax, use tax, gas tax, property tax, and this year-- a surtax! A tax on your taxes! Yes, they want it all. Spending it out of control, clearly.

The government should have only one tax: income tax. Tax people once on whatever they earned as wages at a flat rate of, say, 20%. Everybody pays the same percentage of their income and then get rid of all of the other taxes. Appropriate the funds as required, but don't ask for another penny.

Why not just tax everything at 100%? Just cut this continuous drama and go ahead and make complete slaves of us all, that is the only direction they seem to be able to go, just go ahead and get it over with once and for all.

paulej:

I'll agree with you. There are lots of things that are 'legal' that go against everything the Constitution states, and it's only going to get worse.

Garnerwolf1, I don't think we are saying different things. I agree the use tax is legal. This is not the issue. My issue is, and as you said, "NC can tax goods imported from another state all day long via the Use Tax". Yes, it's within its rights to do this, not because it taxing imported products, because that is unconstitutional, but because it has the right to have a use tax -- a tax on goods used in the state.

It does not change the fact that this is, without question, an attempt by the state to bypass what the Constitution says. In my opinion, it's wrong and not in the spirit of the Constitution, but it's nonetheless legal.

paul: you're wrong. do some research. Start with N.C.G.S. 105-164.1 and Oscar Miller Contractor vs North Carolina Tax Rev. Bd. and In re Assessment of Additional N.C. & Orange County Use Taxes, 312 N.C. 211, 322 S.E. 2d 155 (appeal dismissed). N.C. and every other state, can tax goods imported from another state all day long via the Use Tax. It's been upheld, at one time or another, in virtually every District, State, and Federal court in the country. I don't think the State will ultimately win this fight with Amazon because their establishment of nexus is via the affliate program, but that's totally different than some Constitutional argument against the Use Tax in general.

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