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

[phranctoast]

It will get overturned.

I hope so.


I have about 7 books on preorder this year from Amazon. They come out from June to December. They wont charge until they ship so, I guess the price will be affected then.

[Sylin]

Yes, it MIGHT get over-turned. This is precisely the kind of crap that TN is trying to do with taxing digital downloads (iTunes, software bought online, etc.) and the public is in an uproar over it. All thanks to a $500m shortfall in the budget, whereas last year we had a $250m surplus. Can we say 'overspending'?

I hope NY doesn't get slapped with this. That said, I'm sorta shocked at the numbers. Only $75m in revenue from this for the whole state? Seems small, considering TN has a much smaller population and predicted over $400m in revenue from digital download taxes. Then again, our tax rate here is 9.25%.

[nycomet]

This tax is appalling. I truly hope that Amazon fights this tax. It is unfair.

[CassilineKnight]

Wow sucks for NY...

And yeah this tax is ridiculous. I hope its overturned.

[coolmilo]

I would sell my Amazon stock if this BS tax crap spreads. Taxing the Internet is bad news for everyone.

[Deadset]

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.

holy crap!

too bad for NYer's, now hopefully this will get overturned before too long so other states don't follow suit.

[meckel]

It is not a new tax, they are forcing Amazon to collect the tax we are suppose to report to our home state and don't mostly because we don't know to. But yes it does suck

From Article:
In other words, taxpayers are legally obligated to report the amount of any sales tax they did not pay on either their annual state income tax forms or by filing a separate "use tax" form. (Use tax is what states call the sales tax when it is not collected by the retailer.)

If this comes as news, then welcome to the "Twilight Zone" of the tax code where consumers who favor retailers who do not collect sales taxes to save money on their purchases become inadvertent, yet budget-savvy, tax cheats.

http://www.msnbc.msn.com/id/23351894/

[Clark Kent]

If this doesn't get overturned through the courts, every state that needs revenue will duplicate this move by New York. This could mean very bad things to both Internet retailers and customers in other parts of the country.

[whippersnapper]

Another reason to move out of New York state to a low (i.e., reasonable) tax state.

[DetroitSportsFan]

Originally Posted by Clark Kent

If this doesn't get overturned through the courts, every state that needs revenue will duplicate this move by New York.

Every state that needs revenue?

All states nickel and dime people with taxes, and if New York gets away with it, the other 49 states will also be on board.

[DarkClown]

Even if it does not get overturned, I can't see how it is enforcable.
If Amazon already has a physical presence in NY then they are already required to collect the tax. If however Amazon has no presence in NY, then I don't see how the state of NY has any jurisdiction over Amazon. In effect if Amazon just ignores the new law what can NY do about it? They can't sue a business that doesn't even exist within their borders. An aledged violation in inter-state commerce is the jurisdiction of the federal courts.

[nycomet]

Originally Posted by DetroitSportsFan

Every state that needs revenue?

All states nickel and dime people with taxes, and if New York gets away with it, the other 49 states will also be on board.

Absolutely true. Everyone will pay if NYS gets this tax bill through. I live in NY so I will ned up paying a sales tax of 8.625% - that's a huge premium to pay. I tend to order online from Amazon to get free shipping (Amazon Prime) and no sales tax.

This is very upsetting.

[foots]

Originally Posted by meckel

It is not a new tax, they are forcing Amazon to collect the tax we are suppose to report to our home state and don't mostly because we don't know to. But yes it does suck

From Article:
In other words, taxpayers are legally obligated to report the amount of any sales tax they did not pay on either their annual state income tax forms or by filing a separate "use tax" form. (Use tax is what states call the sales tax when it is not collected by the retailer.)

If this comes as news, then welcome to the "Twilight Zone" of the tax code where consumers who favor retailers who do not collect sales taxes to save money on their purchases become inadvertent, yet budget-savvy, tax cheats.

http://www.msnbc.msn.com/id/23351894/

I thought this was common knowledge. Judging from every other post in this thread I guess I was wrong.

[miked924]

Yeah this really blows

[sj001]

Yep, I knew this was coming for a while, they always find additional methods to tax people. I would just love to know where it ALL goes, seems like too much goes to BS stuff like "slush" funds.

[EvolutionCherry]

Sh_t! Sorry New York.

[War Pig]

Being from the shit state of NY I am truly disgusted at how this state keeps screwing us for more money. It makes me even more sick as I am a state employee, and we can't even get the state to give us a raise that keeps up with the cost of living. Hell last time we went almost four years without a contract, and this time we are a year into working without one. The only thing that makes me feel a little better is the fact that I buy all my big ticket items in PA as I live about forty minutes from Erie. I remember a few years ago NY sent people out to locations in Erie and they wrote down NY plate numbers, then sent you a letter in the mail telling you how you owed them tax for anything bought while you were at the mall. This didnt last long and I don't think the internet tax will either.
Sorry for the long rant, but as you can tell I am very sick of this state.

[Marquoz]

As the internet gets more popular for purchases, I think more states will end up doing this, I don't see this going away at all. It's not about getting more, it's about stopping the downward decline of sales tax revenue. Imagine if a measly 10% of New York people stopped purchasing from B&M and started purchasing online. That's a huge downturn in sales tax revenue! If they don't cut or add new services/slush funds, there will still be a major hole in the budget.

[Sylin]

Originally Posted by Marquoz

As the internet gets more popular for purchases, I think more states will end up doing this, I don't see this going away at all. It's not about getting more, it's about stopping the downward decline of sales tax revenue. Imagine if a measly 10% of New York people stopped purchasing from B&M and started purchasing online. That's a huge downturn in sales tax revenue! If they don't cut or add new services/slush funds, there will still be a major hole in the budget.

True, but the problem is that Americans don't like taxes, period. Escapefrom endless taxation was one of the core reasons why we founded this nation to begin with. Historically, Americans were NOT taxed except in times of war, when the government needed additional monies. (I read recently that the USA could actually operate normally as a country by taxing all citizens a 4% flat income tax, and abolish state and sales taxes--I'm all for it.) However, that changed in the 20th century and taxes became commonplace. Hell, the IRS wasn't even formed until AFTER World War II. Our grandparents did not pay the same taxes we do... not by half.

It's not that all taxes are a bad thing. They have their uses (roads, schools, police/fire, libraries, parks, museums, utilities). But spending, even at the state level, is OUT OF CONTROL. And instead of preaching fiscal responsibility, our officials just suck more and more from the populace. Here in Nashville, they recently released the budget for the governor's mansion remodel project, and discovered they spent $15,000 on dimmer switches. WTF?!?!?!

As a business owner, I get smacked even harder than most people. I have to pay sales tax on any equipment I buy. Then, I have to turn around and pay additional tax on the depreciated value of that equipment EVERY YEAR. Oh, and my annual business license renewal must be paid thrice: once to the state, once to the county, and once to the city... triple the fees and triple the paperwork for what amounts to the same license. It's ludicrous.

So call me a rebel, but yeah, I buy my personal stuff from Amazon so I can dodge the sales tax in TN, which is 9.25%, one of the highest in the nation. If Amazon ever started taxing internet purchases here up-front, I'd cry.

"Damn the man. Save the empire."

[dakota81]

Originally Posted by phranctoast

Oh well. It was bound to happen one day.


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

Many, if not most, states already require you to calculate up internet purchases and pay the extra sales tax when you fill out your yearly taxes. Almost no one pays it, though. So NY will just be enforcing what was most likely already the law in the state.

As much as people are cheap and hate taxes, this is a good thing and will help encourage local businesses, instead of letting e-tailers have such a decisive advantage.