Death in the Family, Cody's, De Lauer's, and Tax Injustic
Death in the Family, Cody’s and Delauer’s, and Tax Injustice
Those of us who live in the Bay Area of CA, and have a longterm interest in the distribution of travel books and travel magazines, as well as a general interest in the distribution of all books and magazines, note with much sadness the commercial passing of two landmarks, Cody’s and Delauer’s.
Cody’s has been one of the leading independent bookstore voices in the U.S. from time immemorial. Cody’s on Telegraph Avenue in Berkeley was a major force in the last half of the 20th century. But times changed. Telegraph grew inhospitable, overrun with the homeless, among other issues, and Cody’s morphed to the trendy 4th Ave in Berkeley, and then also branched out to San Francisco, and then retreated from both of these to take a last stand on Shattuck Ave in downtown Berkeley. The final Cody’s store on Shattuck closed this week.
One aspect of this death is the gross injustice of taxation burden imposed on Cody’s, but not on its Internet competitor, Amazon. People came into Cody’s or come in Book Passage in Marin County, another major player, and browse. They love all the author programs. The love to look at books and sip a cappuccino. But they don’t buy their books there because they have to pay an additional 8.75% sales tax. On Amazon, there is no sales tax. California desperately needs tax revenue for basic services, yet all the books sold on Amazon and shipped to CA generate $0 in tax revenue. This structural issue also wipes out the local economy, pushing Cody’s in bankruptcy.
A similar adverse tax structure damages my purchases of photo equipment in CA. My best place to buy a new $1,800 Nikon D300 camera would be at Calumet in San Francisco. But I have to pay 8.75% sales tax. I will buy over the Internet from B&H in New York to avoid the sale tax. This is arbitrary and unjust, and damages the local economy, and deprives CA of the tax revenue needed for basic services. It is a mystery to me why Internet sale continues to be seen as a sacrosanct area where no sales tax should be collected.
The death this week of De Lauer’s Super Newsstand in Oakland, after 101 years, is a parallel story. Over the years, I have enjoyed going to De Lauer’s to get magazines, though they also sold books. They had every magazine in existence. But the magazine world is changing. Internet access to specialty magazines has cut into the print versions, which De Lauer’s sold. Fewer people today actually pick up a magazine in a magazine store, especially where they have to pay an extra sales tax.
Wise governance in the society should have closed this tax loophole a decade ago. But that didn’t happen. So we are left to survey the local tragedies.