Posted on 04/24/2008 5:27:21 PM PDT by PROCON
It wouldn’t have to be permanent, just long enough to make the point.
Sadly, New York State has a valid claim of nexus. BUT ONLY a valid claim for Amazon Associate sales made through New York State based Associates. If a New York State located Associate isn’t getting the commission on the redirected web traffic sales, New York State has NO claim of nexus on the transaction.
The affiliate program in question:
http://affiliate-program.amazon.com/gp/associates/join/002-5705917-9279232
E-businesses do have an advantage as they unlike brick & mortar stores can relocate easily and will flee New York for other tax free states with server farms. I could even see off shore servers or server farms on Indian reservations handling e-retail to beat all US taxes.
“”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.”
Hello! Do you pay shipping and handling when you buy at a local store? The shipping adds to the product what not paying the sales tax takes away. Charge both and it is the local store that is getting the unfair advantage.
Fine, so Amazon stops buying banner ads on New York based web sites.
thanks, bfl
There was something left untaxed? Will wonders never cease?
New York - The Vampire State
Thanks for all you work in that area.
Listening to WBEN every one is coming out against the toll hike yet NO ONE is doing anything about it. We are so alone in most battles in this frikin state.
I talked to Jeff Williams last night and the vote for the toll increase will be after a long power point presentation showing what the people said at the public hearings.
One of the big problems is at the Buffalo hearing most of the people that went were all for the increase. Who were they? Union hacks.
We don't call it The Vampire State for nothin'
And drive out $500M in 2009.
A small increase in cumulative tax rate doesn't do any good when the taxpayer leaves the jurisdiction permanently. I left NY a couple years ago. NY doesn't get any more money from me. Among other reasons for leaving, I knew NY would soon tax Internet-facilitated out-of-state sales. For want of a few hundred $$$ more, NY lost tens of thousands annually from me. Another brilliant economic move brought to you by the aptly-named "Empire State".
Methinks once the courts sort that out, NY will find that the Associate owes the taxes, not Amazon.
Heh. Methinks NY may be in for a shock when resident Amazon addicts log on and see “Sorry, due to NY tax code we’re not doing business with anyone in NY any more. Tell your representative to repeal law XYZ so we may resume business.”
The NY legislature just picked on somebody its own size. This could get interesting.
***if they allow sales via “click-throughs” from New York-based Web sites.***
The article is confusing.
Are Nyers going to be charged if they shop online? (How do you enforce that)
Are NY incorporated web sites going to charge NYers (or everyone) who buys online?
Are websites that use a NY based host going to have to charge tax? (Again, how do you enforce that against companies that aren’t incorporated in NY.)
Of course, my solution is simple: If you want to charge me tax, I’ll just opt out of any online purchase I might have made.
***Fine, so Amazon stops buying banner ads on New York based web sites.***
Ok, but just how is NY suppose to collect the tax? How is NY going to know that a certain shopper got to a certain website from a NY hosted website?
Same way the IRS does things, require you to keep records, audit you if they think you're cheating... throw you in jail if you do cheat.
And, do you even know if it is possible that websites can track individuals to a website they came from? And, even if it can be done what is to stop a customer that came to a website from a banner from simply saving the website, closing the window and then going back to the site directly to avoid having to pay a sales tax?
Annnnd, by what legal right would NY have to require a business to do this if it is not a NY company?
Yes, of course they can, and do. I have a client that I wrote software for and they buy banner ads on various sites. I made a report program that shows them exactly how many people came from which site as well as how many of those people went on to sign up for their service. They can even look up someone's record and see which site they were on when they clicked on an ad and were sent to them.
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