Internet Tax approved in NY state - heads up, New Yorkers!

[nrose101]

NY State Approves Amazon Tax....

Bill requires online retailers to collect a sales tax on items purchased by state residents.

It was only a matter of time I guess before one of the states in the Union decided to try and tax the internet. New York State legislators, not alone in a perennial state budget deficit, have decided that the state should start requiring online retailers to collect the sales tax on items they ship there.

Dubbed the "Amazon Tax," the bill is now awaiting the signature of the new governor David Patterson. Considering that he's a Democrat a signature is most likely a mere formality.

"This is a first step - but a critical one - in our ongoing battle to level the sales tax playing field between New York retailers and the out-of-state Internet giants that have, for years, capitalized on an unfair and unintended competitive advantage driven solely by tax policy," said James Sherin, president and CEO of the Retail Council of New York.

Considering that Amazon is really just a huge online Wal-Mart, minus the $2 polos of course, is there really even a retailer playing field left anymore that Wal-Mart hasn't paved?

For its part the state Business Council has voiced its displeasure with the legislation.

"Albany invented the Amazon.com tax because they failed to cut spending," said the council's Heather Briccetti. "As long as they don't recognize the economic reality and continue to increase state spending, they'll keep inventing new taxes like this one."

Amazon plans to fight any plan to make it potentially raise its prices by 8% for NY state customers. The state counters that it and other online retailers could face audits and bills for back taxes going back years unless they agree to start collecting sales tax for the state by June 1.

Either way, the matter won't be settled any time soon.

(from zeropaid.com)

[nycomet]

Money hungry bastards! I live in NY State. I will have to move.

I hope Amazon wins its case against NY state. If it loses, all other states with sale taxes will jump on the bandwagon.

[jurassic_pork]

I totally agree that this is a very large and important first step. I'm not surprised that NY is first as they have been burning thru money like no ones business. If this sticks I expect a domino effect as many states are suffering budget shortfalls and might see this as a quick easy fix to fill up their coffers...I don't expect the federal government to step in (although they should).

[Lord_Stewie]

Originally Posted by jurassic_pork

I totally agree that this is a very large and important first step. I'm not surprised that NY is first as they have been burning thru money like no ones business. If this sticks I expect a domino effect as many states are suffering budget shortfalls and might see this as a quick easy fix to fill up their coffers...I don't expect the federal government to step in (although they should).

indeed, and 100% with you on this fact. definitely a "Domino affect" is going to happen.

[Flyfrnk1624]

Son of a...

[jurassic_pork]

Originally Posted by shadblz

indeed, and 100% with you on this fact. definitely a "Domino affect" is going to happen.

I would not be surprised to see New Jersey and Connecticut jump on the bandwagon with NY on this one.

[Rabidhunter]

Yeah, when a trend like this starts in government, it most likely will continue. I bet we might see another state try to pull this off soon.

[Horhay]

that just sucks!

[miked924]

Yeah that sucks...it's not very cut and dry though, there's alot more to it....besides the fact it won't improve the economy. Congestion pricing was also supposed to be sure thing and look at that

[leftykt]

That sucks big time!!

[DetroitSportsFan]

No surprise. Just another way to bleed us dry.

[Herr Schmidt]

Hell i can see Michigan doing it also.This state is very hurt.Many people are moving out.Others want to leave but the state is running out of u-hall's so they cant lol.But it is true more people leaving then coming here so the u-hull thing is some what true.It was on the news a week ago about it.Its just sad We need some one in office that says america first after we fix our country then we can help other country's out.

[ManUtd]

Not good at all! If this becomes law then it'll only be a matter of time when California follows suit.

[dialog_gvf]

Originally Posted by flickdirect

Bill requires online retailers to collect a sales tax on items purchased by state residents.

Wow. Taxland (known to the rest of the world as Canada) doesn't even do that for books and video.

The consumer is partly trading cost (including tax) savings for the time penalty of purchasing online. The state is claiming lost sales taxes, but more income taxes will come from this too, as consumers spend more locally, and that results in direct and indirect income tax improvements.

Overall, it's an anti-competitive measure that is akin to a state throwing up a tarrif for imports into the state.

What's next? A border to collect taxes if people pop across the state line?

Gary

[dialog_gvf]

For online retailers to support this will result in costs to updating their cart software. Costs that will be passed onto to ALL consumers.

So, in a sense, New York is about to tax all of us.

Gary

[phranctoast]

New York Readies for Its Amazon Tax


The passage of New York's so-called "Amazon Tax," bill, which would force e-tailers to collect sales tax from New Yorkers making purchases, has since been signed, as it set to go into effect on June 1st, bringing in an estimated $50 million in revenue this year and $75 million in 2009.

New York has begun notifying etailers to ensure they are aware of the new rules.

Prior to this, retailers had to have a brick-and-mortar presence in a state to be required to collect sales tax. The argument has frequently centered on the huge number of different sales tax rates across the country. It is also difficult to see how something like this isn't going to face legal challenges. In fact, in a 1992 Supreme Court decision, Quill vs. North Dakota, the Supreme Court ruled that out-of-state retailers cannot be required to collect sales tax on purchases sent to states where they did not have a physical presence.

"The Supreme Court’s reasoning was at least partially based on the fact that, at the time the case was decided in 1992, there were over 6,000 separate sales and use tax jurisdictions in the United States (states, localities, special tax districts, etc.) and to impose a collection obligation on a remote seller would impose a crushing burden that would severely restrict interstate commerce."

Now there are over 7,000 different sales tax laws, and while it should be easy for an entity as large as Amazon.com to handle that, the law affects companies that do more than $10,000 worth of business in the state. That's not that much business, and could force smallish etailers to have to handle this confusing maze of laws.

You can bet Amazon.com and other large etailers will challenge this, using that $10,000 limit as ammo. Being from a high sales-tax state as I am (California), I certainly am not eager to see this law be successful - but I also am not foolish enough to believe something like it won't eventually take shape across all the states.

Oh well. It was bound to happen one day.


http://www.huliq.com/57973/new-york-...its-amazon-tax

[saprano]

wow, i stop shopping at bestbuy because amazon was cheaper and it had no tax..I better use my prime membership wile it last.(june 11th)

[DetroitSportsFan]

Thanks New York!

Greedy bastards.

[Blu Titan]

Hopefully, that "idea" won't spread to fast to the other States. More sales tax = more waste.

[SGRSBSKIER]

It will get overturned.

Basically buying online from someplace that does not have a store in that state and charging that states tax to it is pretty much no different than actually buying something from another state and they charge you your home states sales tax.

This would be like you live in NYC and bought something like a TV in New Jersey you would have to pay New York sales tax cause thats where you are going to use it.