Kabanos
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|  [News] 'Amazon Tax' Lands in New York
www . internetnews . com - quote:
'Amazon Tax' Lands in New York
April 10, 2008
By Kenneth Corbi
Controversial new law shifts collection requirement to online retailers in a move that other states could follow, but legal uncertainties abound.
With the passage of the hotly debated state budget last night, New York legislators approved a bill that will require many online retailers to begin collecting sales taxes on purchases shipped to the state, even if they have no operations or employees working there.
New York Governor David Paterson is widely expected to sign the measure.
The so-called "Amazon tax" closes a loophole for Internet retailers who derive sales through affiliate programs in which Web site owners place a link to the merchant on their site and earn a commission on sales made from referrals. In lobbying for the bill, the industry group representing New York retailers had argued that the exemption from the sales-tax collection requirement gave out-of-state online retailers an unfair competitive advantage.
...
More @ »www.internetnews.com/ec-news/art···York.htm
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Stacy
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| This has been kicking around Albany for some time. Spitzer was going to enact it just before Christmas He was warned people might think he was some sort of Grinch. I guess he doesn't have to worry about that anymore  |
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Straphanger
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| reply to Kabanos
I guess we've had this coming for a while now. Best enjoy it while it lasts. I wonder when this will go into effect though. Maybe July 1?
Same would probably apply to NewEgg too.
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RealoRc
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Brooklyn, NY | reply to Kabanos
Now I have to walk out of my house to buy stuff at a cheaper price and then lug it back home.  Sounds like I'll be my own UPS delivery guy. |
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SandShark
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said by Straphanger  :I guess we've had this coming for a while now. Same would probably apply to NewEgg too. What many have failed to realize or have been ignoring is all states (with the exception of Alaska, Delaware, Montana, New Hampshire and Oregon) have required residents to pay state sales and uses taxes on purchases made through the Internet. It's just that no one has enforced it.
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Tzale
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| said by SandShark :said by Straphanger :I guess we've had this coming for a while now. Same would probably apply to NewEgg too. What many have failed to realize or have been ignoring is all states (with the exception of Alaska, Delaware, Montana, New Hampshire and Oregon) have required residents to pay state sales and uses taxes on purchases made through the Internet. It's just that no one has enforced it. Exactly... But still... I think this is kind of a bunch of BS... The reason the economy boomed after the internet became popular a few years back is because of the cheap prices on the net... These types of laws will just make the economy sag a little more. People are still going to find it cheaper to buy online since the prices are usually cheaper when the retailer doesn't have to pay brick and mortar expenses.. So basically the people of NY get screwed out of more of their hard earned cash, and the local retailers might see a small rise in sales, but overall, people will still keep buying on the net, just at an increased price... 
-Tzale
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CLNYC
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| reply to SandShark
said by SandShark :said by Straphanger :I guess we've had this coming for a while now. Same would probably apply to NewEgg too. What many have failed to realize or have been ignoring is all states (with the exception of Alaska, Delaware, Montana, New Hampshire and Oregon) have required residents to pay state sales and uses taxes on purchases made through the Internet. It's just that no one has enforced it. As the old saying goes, there are 2 things people can't avoid. Death and taxes. Why should an out of town merchant have an advantage over a NY business which is legally obligated to charge tax? The current system is not fair to NY merchants. It was only a matter of time that NYS would look to get taxes that they are entitled to. This can only help the NYS economy. People will either buy from NY merchants or NYS will reap the tax benefits from those who choose to use out of state merchants.
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Gres7
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| >> Why should an out of town merchant have an advantage over a NY business which is legally obligated to charge tax?
Maybe course NY state does not provide/serve/helps that "out of state company"?
Using your logic : If I go shop to NJ - I still have to pay 8.25% sales tax instead of 7% and difference should go to NY state? Or people from NJ should pay sales tax while shop in NYC, even though some merchandise under $100.00 has no NY sales tax? |
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tmpchaos
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| said by Gres7 :Using your logic : If I go shop to NJ - I still have to pay 8.25% sales tax instead of 7% and difference should go to NY state? Actually, that is already NY's logic.
»www.tax.state.ny.us/pdf/publicat···_804.pdf
In State 1 you purchased an item with a purchase price of $100 and paid $6.25 in
sales tax. The combined rate of tax in State 1 is 6¼% (3¼% statewide rate and
3% local rate). Because you were a resident of New York State when you
purchased the item, you owe New York State and local use tax on the purchase
price at the rate in effect in the locality where you reside in New York when you
bring the item into New York, which was two months after its purchase. Your
combined New York tax rate is 8¼% (4¼% statewide rate and 4% local rate).
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| So, by law, if I go out of state, I have to keep every receipt and figure out the reciprocal credit of that state and calculate how much I owe in tax to Albany. If I buy something in Iowa, I have to pay the full 8.25% on top of the tax I already paid, but I can apply to the state of Iowa for a refund. Nice.
It's quite ridiculous. At least with the internet tax, you aren't placing the burden on the tax payer to figure out what he owes.
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Gres7
join:2001-03-05
Brooklyn, NY | reply to tmpchaos
O M G
So, the power of that document makes EVERYONE in tristate area criminal!
There is something seriously wrong/outdated about this.
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ruscorp
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April 14th, @08:18PM
| reply to Kabanos
God save Newegg.com!
Time to make a friend in CT. Where is Dv8or? |
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tmpchaos
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Oh, no. So long as you remit use tax to the state on your return, you're fine. Don't even have to itemize it. |
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Stacy
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| reply to Kabanos
Cheaper prices is only one reason for shopping online. There's better selection and the time and money saved not having to run all over town. With the rates some sites charge for delivery, we may soon find ourselves paying for the convenience of shopping online.
I don't think Albany cares one way or another about "leveling the playing field." All they care about is closing the budget gap. Squeezing the money out of Amazon beforehand certainly beats relying on the honor system at tax time. |
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SandShark
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| reply to Kabanos
Obviously, it's a lot easier for the states to go after large corporations and have them do the "dirty work" of collecting taxes for them rather than enforcing the existing tax laws that are already on the books. Imagine the nightmare this is going to cause for small Internet businesses if every state follows New York's lead and who eventually could be required to collect and file quarterly sales tax for every county in the country!
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Boricua65
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Sacramento, CA | I know here in California that would become a reality if this get enacted.  |
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PhoenixDown
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Jeffrey
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Crap. It was good while it lasted.
It will be interesting to see any drop in online shopping this Christmas season as a result of this law. Assuming it goes into effect by then, which I assume it will.
Time to move back to Delaware. Love that place. 
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ruscorp
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| said by Jeffrey :Crap. It was good while it lasted. I'm sure we'll have lawsuits flying around in no time.
Gotta love the common law system. |
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Straphanger
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| reply to Kabanos
According to a new article, all online businesses with annual sales over $10,000 will be required to charge state sales tax. This may extend even to e-tailers that use eBay or Amazon Marketplace for sales.
If everything works as planned, expect to see sales tax on purchases by June 1.
»www.amny.com/news/politics/ny-st···78.story
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