"If they get their way, they'll charge everything on your 'Taxpayers Express Card.' And believe me, they never leave home without it." - President Reagan
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.)
I think NY is one of the worst run states in the union. Can’t wait to move out of it.
Then they go down the street and buy one of those new fangled automobiles and my horse and buggy sales take a hit.
Just damn !
Typical liberal static analysis. They never factor in the possibility that policy changes result in behavior changes in the buying public. The more likely effect is a large drop in internet purchases. If you want less of something...tax it.
"If they get their way, they'll charge everything on your 'Taxpayers Express Card.' And believe me, they never leave home without it." - President Reagan
That dumb s—t retailer should have been on the horn to his state house demanding they reduce his taxes. Now he’s thrilled that someone else will get taxed.
Typical bastard!
Any savvy web site operator would move to another state and tell New York to go eff themselves!
Would they rather pay the tax or dump the New York affiliates. I can't think that the affiliates bring in that much business which wouldn't have ended up at Amazon anyway.
I ocassionaly go through an affiliate to help out a friend when I'm buying anyway, but I wouldn't if I had to pay tax.
“That dumb s—t retailer should have been on the horn to his state house demanding they reduce his taxes. Now he’s thrilled that someone else will get taxed.”
Typical NY Liberal.
NY Land of Taxes....always has been.
But how many people in New York have friends who live in neighboring states like New Jersey who can take delivery of mail ordered goods to avoid the New York sales tax?
well you can beat your head against a wall all day too. It will only get you a sore head...this is NY...if you're smart you get out of NY.
Like I should...
Article 1, section 10 of the Constitution says it is illegal for a state to impose “imposts or duties”, save for what may be “absolutely necessary for executing its inspection laws”. Since NY is trying to impose what is effectively an import tax, it ought to be held as unconstitutional.
If the item is shipped to NY, it’s taxed at NY rates. Doesn’t matter where the retailer is based.
Unless you just meant to leave the state as a protest.
Come on, get with the program, ALL Constitutions are living, breathing documents/s
They are trying to backdoor their way in. If an affiliate which links to Amazon is based in New York, the state is trying to claim that Amazon then has a New York presence.
Solution: “We no longer ship to New York addresses.”
The state estimates this new Internet tax will bring in $50 million this year and $75 million next year.
The "bring in" phrase is music to liberal ears, as if it would be distributed to all the good citizens of New York.
It's sad, but they truly think that way.
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