This will take away the 7%-10% playing field advantage that onliners like AMZN and EBAY had of Not paying the sales tax. All sales for online purchases will be charged sales tax no matter where the items are shipped. This will help brick-and-mortar stores to compete very well and BBY stock will get to $30 shortly. Bozo of AMZN is not any smarter than anyone else . He had a bloody this playing field advantage and now that it will be gone, AMZN stock will go down under $100 in 6 months.
It has to pass the GOP House and it will have ammendments stuck to it if it even passes there. Amazon actualy wants it. Republican states may not adopt it and analysts are saying it will not matter much. I know it won't stop me and my daughter from buying on Amazon. My family have not bought anything in BBY for about 2-3 years and that was my son's X-Box. Keep believeing it will matter as an investment strategy. What will matter is what the management tells us on May 21. Good Luck!
Are you kidding? This legislation will absolutely matter.
Currently less than 10 states charge sale tax on purchases over the internet. When (not if) this legislation passes, consumers will no longer be able to save between 6-10% (depending on the state) on on-line transactions. That was a huge incentive to people to purchase on the internet.
Why would you buy an expensive piece of CE over the internet from AMZN's bazaar when you can walk or drive 10-15 minutes away to a Best Buy and get the same product at the same price (price matching and the elimination of the unfair tax advantage) that exact day?
Without any doubt, this law will level the playing field between brick & mortars and on-line retailers!
Moreover, despite your vehement hatred for the company and non-stop bashing, you cannot ignore its cheap relative valuation despite its YTD performance:
Price to sales:
BBY = 0.17
AMZN = 2.0
CONN = 3.3
WMT = 0.55
BBY = 4.0
AMZN = 44.4
CONN = 17.4
WMT = 8.4
Any word on if Congress yet passed the MarketPlace Fairness Act of 2013 Legislation?If passed, its great news for BBY, RSH, WMT,TGT,WSM,BBY,Barnes & Noble..etc..etc. thousands of companies who have Brick-and -Mortar stores.
Senate went on recess without voting yet. Once they return, they'll vote and if it is passed, then it has to be voted in the House of Representatives. The White House is in favor, so it won't get vetoed.
I have read all the posts here and some valid points by everyone. Seriously though, to me this is such a non-issue. Yes, overall it passes it will bring in billions in tax revenue. So just do it already. It really won't make too much of a difference in how people shop. It shure won't for me. The number one reason I shop on-line is convenience and it is so much easier and faster to comparison shop. If I have to pay sales tax on-line or at the store I most likely will still be making my purchases on-line and have it delievered to my house. I really don't see what all the fuss is about.
Sentiment: Strong Sell
The House and the GOP have different plans. The law is already on the books this will enable states to make their own decisions. I think BBY has an online service don't they? The CEO is trying to push it. AMZN actually is in favor of the proposed new terms of the bill. Let's look at the big picture Amazon is still kicking everyone's butt and BBY is matching which will hurt margins. Eventually you will see it in the disclosures each quarter. Note I didn't call them earnings since they have none yet. You cannot cost cut your way to prosperity. All these new policies at BBY will just allow them to hang around.
The Senate should vote it in, it's fair. But the House is not that keen on it, as it resembles a tax increase. To get the bill through all of the Republicans who signed Grover Norquist's "tax pledge" in the House could be quite a task. They are very touchy about perceived tax increases. Nothing will go into effect immediately, I assue you.
Amazon wants to collect from all states. They already collect from 7 or 8 significant states, and it will simplify their record keeping to collect from all.