Posted on 04/24/2008 5:27:21 PM PDT by PROCON
State Estimates New Rule Will Bring In $50 Million In 2008
NEW YORK (CBS) ― New York Internet shoppers, take note: in five weeks, sales tax-free shopping will end on many Web sites thanks to rewritten state rules that are trying to force Internet retailers to collect.
At Chrono Tech Watches in White Plains, Jerry Nally is glad the clock is ticking on many Internet retailers that don't charge New York sales tax. Nally says those so-called "e-tailers" steal his customers.
"They'll come in our store, look at our product, touch it, play with it, look at the warranties, then go back to the web and buy it tax free," says Nally.
For years, retailers with "brick and mortar" stores in New York, such as Wal-Mart, 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, like online shopper April Cantin.
"Coming here, you have to pay a lot of tax, when you pay on line, you pay nothing, just shipping and handling and the item," she says.
In the midst of a budget crisis, New York is now telling Amazon and certain other large Internet-only vendors they must collect state and local sales tax -- if they allow sales via "click-throughs" from New York-based Web sites. The new rule is set to go into effect on June 1.
The state estimates this new Internet tax will bring in $50 million this year and $75 million next year.
The Retail Council Of New York State hopes the new rule is the first step toward collecting sales taxes on all Internet commerce.
But the new rulings aren't sitting well with the Internet giants. Amazon, the largest Internet retailer, is objecting to the decision, saying "this is the wrong time to increase taxes on New Yorkers."
"You will drive people away. People are not going to want to shop online anymore," says Cantin.
Nally is hoping online businesses will comply, however, telling CBS 2 "it's about time!"
"I have to pay tax, and Amazon should pay tax, it's as simple as that," he says. "There's no reason for a difference." (© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)
There are other retailers, like LL Bean who never charge me tax. Will AG Cuomo chase them down as well? NY has a foolproof method to collect tax from those who buy cars in Jersey and Pa. The cars can't get registered until slaes tax is paid. But if a company like Amazon does not go along I don't see any way, short of lawsuits, to force them.
Okay. All you typical New York bastards out there, I appologize. Well wait a minute. That doesn’t apply to all you typical New York Liberal bastards. But then I digress. I thought liberal was synonymous with bastard.
;-)
Oh yeah, it's Amazon that's paying the tax - Greedy basdits!! To quote Bugs, what a maroon...
Bingo! Let’s hurt everyone equally, enriching the coffers of the state.
Yeah, only 20 million people in New York. No great loss. /s
Now, we shall see......
Yes, isn’t that a hoot.
The tax will come out of the pockets of New Yorkers and into the pockets of inept politicians. Money that might have resulted in other economic activity by those who earned it will be squandered in the bowels of a government bureaucracy.
S^*ks. I was hoping when Spitzer went away, so would this.
Thanx for the post in the Canteen too!! :)
I hope not. Amazon.com is one of my favorite sites. No taxes, no shipping, and only the items I order without all the BS.
Next stop, Maryland! Wooo-wooo!
Maybe I can countenance such steps when states jettison their income and property taxes.
My pleasure in the Canteen.
I have been battling these bunch of boobs for ever. Things never change just get worse and worse. Bluer and bluer as all the good people leave.
Tomorrow they are voting to raise tolls yet again. I have already done one TV interview and will do more tomorrow, some one has to call these bozos out on the carpet.
Sounds like Amazon is in the headlights. Bye-Bye Amazon, good to have known ye.
Why love NY?
I’ll open a blind forwarding service, and reship for a small fee.
As a resident of New York State, I’m definitely against the sales tax. I buy a lot of different items (mostly books) from Amazon, mainly for convenience. It saves me from having to drive the half-hour to a Barnes & Nobel, which might not even have the title I’m looking for in stock. I also buy used books from private sellers on Amazon, and I’m wondering if Amazon will be forced to collect taxes on those as well. Once this law takes effect, the only consolation is that the NY State sales tax I’ll be paying through Amazon, will actually be less than what I’d have to pay if I bought the items locally. Our sales tax here is 9.75%. I’ve heard that a suit will probably be brought against this new tax, and that a lot of other states are holding off issuing similar laws until the issue in New York State is settled in court.
Yup, and when they move, they’ll take lots of taxed salaries with them. This will be a net loss for NY, but a net gaid for some red state (prob Nevada or Texas).
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