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 .
Internet news
Story at Internet News: http://www.internetnews.com/ec-news/article.php/3740056/Amazon+Tax+Lands+in+New+York.htm
This won’t end well for NY
There is no nexus, NY can’t force collection. I don’t see the affiliate links establishing that nexus.
It would be like charging sales tax to a business located in NYC which advertises in the NYT for a mail order sale to a customer in Iowa when the merchant has no presence in Iowa other than an advertisement in the NYT such that the NYT is sold in Dubuque where the customer learned of the business and chose to trade with the NYC based business.
N.B. Many states, including the one in which I make my home, Florida, require that consumers pay sales tax on merchandise shipped to them from out of state merchants that do not collect sales tax for Florida. Last year I filed the appropriate returns and paid $17.23. The law requires me to pay the tax, they cannot force out of state retailers to collect and remit the tax as New York is trying to do.
New York State Passes Legislation to Collect Sales Tax on Intern
Those who avoid paying the taxes that others do pay are simply subverting the system and raising taxes for those who do reside in the state in question. This is simple economics. While I agree that NY is wasteful in its spending and need for tax collection it is entitled to do collect sales tax on all sales made to those in NY state. This is a simpler solution. An option of course could be to force residents to submit copies of their credit card receipts, check registers, PayPal accounts and other to substantiate their claims and then audit and fine those who fail to comply. As a note to those who purchase on line one of our clients was audited and caught – he claims it unintentional that he bought something and forgot there was no sales tax charged and then forgot at the end of the year to pay the use tax – he was fined about $400 on a $350 item and lost his appeal. He was also a professional and had to explain to the licensing burea what this charge was for. It is a mess right now – this is a simpler solution.
That is crazy
Who do you suppose will audit those credit card receipts, check reigsters, pay pal accounts ad nauseum?
Notwithstanding the privacy concerns, the bloat at the NY department of revenue charged with auditing those receipts would more than outpace any tax collection afforded by such collection methods.
There is no licensing board that could possibly be concerned with such a minor matter as a few dollars of use tax absentmindedly omitted. I call shenenigans.
New York is not entitled to force merchants with no nexus to collect and remit NYS taxes. Persons located in NYS can be required to pay use tax in certain instances from out of state merchants who do not collect sales tax at a level equal to that of NYS taxes. These collections are very small, most people don’t know of the requirement, and fewer people pay them.
I do, but it was less than $20 if I recall. A Herculean audit effort will do more harm than good.