Online Retailers Collecting New York Sales Tax

[RobRich]

Amazon, Newegg, and other large online retailers are now collecting sales tax from customers based in New York for interstate online commerce.

Quote:

In April, as part of its 2008-2009 budget, the state legislature passed what is being called the "Amazon Tax." What’s new isn't actually a change in the law—New York residents always owed tax on their purchases—it is an expansion of the law that is meant to force online retailers to collect the tax and send it to New York.

The state now says tax must be collected by any online store that gets customers referred to them by Web sites based in the state. In late April, Amazon filed suit challenging the state law. And on Friday, Overstock.com filed a related suit. Overstock, has stopped doing business with its affiliates in New York and so it will not collect sales tax for now.

Source: Bits (New York times Blogs)

[Theophylact]

It's the wave of the future. Been true for lots of purchases where the company "did business in" the state; I've always had to pay DC tax when I bought TurboTax or Quicken directly from Intuit, and the same was true with Symantec.

Why should internet sellers get a break that local retailers don't? They can always offer a better price because they save by not having to pay for brick and mortar; let them compete on that basis.

[pickel]

Just buy the item in another state and have it shipped to your buddy who lives in New York. If, indeed, there's a tax needed to be paid, it should be given to the state where the item is purchased not where it is shipped. I thought there was a moratorium on sales tax on the internet????

[Keymaker]

Doesn't surprise me. It's liberal New York!

[Keymaker]

Quote:

Originally Posted by pickel

Just buy the item in another state and have it shipped to your buddy who lives in New York. If, indeed, there's a tax needed to be paid, it should be given to the state where the item is purchased not where it is shipped. I thought there was a moratorium on sales tax on the internet????

Huh???


And the price difference would merit the diverted tax invasion?

[jrsweger]

Personally I find it extremely annoying. I pay enough in taxes in NY that I'll try to take advantage however I can. It's bad enough that the fools at one time wanted you to pay tax to NY on clothing that you would purchase in PA. Now, I think most of the tax on clothing has been removed under a certain dollar amount. Oh, and there is a line item on the income tax form for you to fill in the amount of sales tax that you owe for any online purchases that you didn't pay NY tax on.

I live close enough to the PA border and have a few friends that live there. It certainly would be simple for them to get the item for me and I'll pick it up.