Now that it’s been signed into law by New York Governor David Paterson, the Internet Sales Tax Law is starting to get some retailers, and customers up in arms.
For years, retailers with “brick and mortar” stores in New York have charged sales tax on orders placed through their Web sites. Yet Amazon.com and other e-tailers with no physical stores have not charged the tax, much to the delight of Internet bargain hunters. However, the state estimates that the new rule will bring in $50 million in just 2008. The tax rule will go into effect at the beginning of June.
CBS News has the story; and here’s a New York State webpage which includes this Internet Sales Tax Provision .
Don’t sell in New York
I hope that some online sellers just stop doing business in New York.
Or just don’t collect it.
If I sell something to someone in NY I will not collect tax. I have no nexus with NY. I don’t live there, I don’t have a business location there, I have no employees there.
Basing nexus on affiliate ads is silly. It will never fly and there will be a lawsuit (start the countdown timer).
Or businesses will simply not collect and remit the tax and wait to see what happens, this way NY will have to institute any proceedings.
The technical aspects of collecting and remitting the tax is not a concern of most large retailers, the bump up in prices (well the apparent bump up in prices) for NYS consumers may just be the straw that broke the camel’s back.
What galls people I feel is that things shipped from NYS to other jurisdictions by retailers with no nexus in those other jurisdictions are not taxed. It is absurd to think that an internet ad creates nexus.
One of my favorite stores B&H has a very clear sales tax policy. This new law will not change that, no sales tax for me in Florida.
Or rather
Or rather the jig is up for New York. I see so many commercials (here in Arizona even) for X and Y and all the good deals they have and blah blah blah and they end with a little disclaimer:
Not available in the state of New York.
I have a feeling that we might start seeing even more of that disclaimer. Besides, what right does New York have to charge sales tax on sales made in other states? Amazon is based in Washington state, if anyone should charge sales tax, it’s Washington state. After all, that’s where the sale was made. Collecting sales tax on a sale not made in your state is asanine.
Some books contain the machinery required to create and sustain universes. Tycho (Jerry Holkins) @ Penny Arcade