New York State Passes Legislation to Collect Sales Tax on Internet Purchases

We’ve got a new governor (yeah, let’s not go there), and now we’ve got a new budget.

As part of its new budget, the New York State legislature yesterday approved the Internet Sales Tax provision, a move that will force out-of-state online e-tailers to collect sales tax on purchases made by New York residents, regardless of where the vendor is based.

And that makes Amazon.com (among other internet retailers not based in New York), very mad. They’re probably going to sue. From Publishers Weekly (for entire article see link below): “Amazon, which currently collects tax in only four states, has vigorously opposed collecting taxes in states where it doesn’t have a presence. A spokesperson for Amazon said the company was still reviewing the language of the statute and had no further comment. It is expected that Amazon will mount a legal challenge to the tax. New York estimates it will earn $50 million from the Internet tax.” From New Rules an explanation of how this tax will level the playing field for booksellers.

We’ve got a new governor (yeah, let’s not go there), and now we’ve got a new budget.

As part of its new budget, the New York State legislature yesterday approved the Internet Sales Tax provision, a move that will force out-of-state online e-tailers to collect sales tax on purchases made by New York residents, regardless of where the vendor is based.

And that makes Amazon.com (among other internet retailers not based in New York), very mad. They’re probably going to sue. From Publishers Weekly (for entire article see link below): “Amazon, which currently collects tax in only four states, has vigorously opposed collecting taxes in states where it doesn’t have a presence. A spokesperson for Amazon said the company was still reviewing the language of the statute and had no further comment. It is expected that Amazon will mount a legal challenge to the tax. New York estimates it will earn $50 million from the Internet tax.” From New Rules an explanation of how this tax will level the playing field for booksellers.

More from The NY Sun, Publishers Weekly, Internet News, Buffalo News, and news analysis from The New York Times .