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Business & Tech

Should Internet Sales Be Taxed?

Local business owners discuss the "Amazon tax,"and we ask for your opinion too.

Last month, state legislators gave internet shopping giant Amazon.com -- along with all of the web's smaller retailers -- a year’s reprieve before imposing a 7.25 percent sales tax for online purchases shipped to California addresses.

What do local business people think?

The issue of sales tax for online purchases is so new, many Napa merchants did not have a strong opinion yet.
 The , for example, has not taken a position on the issue.

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Beth Pratt, with the , said “we are funded by the government, so we can’t take sides for advocacy.”

But in her opinion, “this is another limitation for small business, which we need to (strengthen) the economy. It’s another regulation,” said Pratt, who believes more taxes and regulations burden small businesses.

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Although she has a website, owner Lynn Campagna said she currently is not doing business online.

“But it is probably something we will start looking into in about a year,” said Campagna, whose retail shop is in the new Napa Square building opposite .

owner Jeff Holmes said he believes the internet retailers should be left alone.

Not having to add sales tax to the item “is a way for small companies to go into business,” said Holmes, expressing  concern that companies may possibly leave the state — or even fail — if burdened by such a tax.

Holmes added that if the legislators want to collect more income, they should consider doing away with the subsidies being paid to farmers.

He believes there are many other areas where government could save money without having to go after small internet businesses, Holmes said.

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