This could spell trouble...

The State of North Carolina is demanding that Amazon.com provide data on all N.C. residents who have made a purchase since 2003 (who they are and specifically what they bought, how it cost, etc.). The reason? N.C. wants to collect back taxes on those purchases. Whoa!

North Carolina's revenue department "demands to know the identities and other personal information about Amazon's customers who have purchased or received these products."

Stevenson (government goon) would not say if the revenue department wants the information to go after customers for back taxes, but she did point out that it has a duty to enforce state tax laws.

"It's a fairness issue for brick-and-mortar retailers that have to charge sales tax," she said.

- From the Seattle Times

It's a little scary to think of getting a bill in the mail from your state government demanding 86 cents for that used book you bought back in college.

Right now, Amazon.com customers do not pay sales tax when purchasing in a state that Amazon does NOT have a physical presence in (corporate offices, warehouses, etc.). Last year, this was even expanded to include Amazon's affiliates in certain states - Amazon promptly severed ties with those affiliates.

A couple of issues this raises for me - with the understanding that I know essentially nothing about tax law:

1. As a consumer, I didn't willfully break any law that was in place when I made a purchase in the past so why does the state have the right to retroactively tax me? If Amazon.com and the state of N.C. didn't work this tax situation out back then, why should customers be penalized now?

2. Do we really want our state governments having knowledge of every CD, Book, DVD, lawn chair, word-a-day calendar (you get my point) that we've purchased online in the past 7 years? I mean, we already have the Feds listening to our calls and reading our email.

Read more here.