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.)
Transporting cigarettes from an non-U.S. controlled territory to a U.S. controlled territory would be a customs issue. Yep.
But charging Amazon NY sales tax is a different critter altogether.
And, just how is NY going to know that you bought a book on Amazon? Amazon isn’t going to simply turn over their books because NY says so.
“And, just how is NY going to know that you bought a book on Amazon? Amazon isn’t going to simply turn over their books because NY says so.”
Same way they did the cigarettes, NYPS.
“Transporting cigarettes from an non-U.S. controlled territory to a U.S. controlled territory would be a customs issue. Yep.
But charging Amazon NY sales tax is a different critter altogether.”
I live on Long Island the the reservation is on Long Island. We were not “territorial criminals”. We are smokers trying to get the best deal.
Almost none of the stuff I buy online comes postal. Usually FedEx.
The reservation is not “U.S. controlled” (that’s why they can have casinos). Not accusing you of anything, just pointing out that your circumstance is different than what they are proposing with this law.
Greedy freeking bastards.
Our cigarettes came regular mail. I’m just posting on my experience with the “no tax” purchasing online. Scared me enough to watch my back.
Even doing my taxes this year, I had to unclick the “purchases online” tax from my claim form. Even doing that was scary!!
If you tried to purchase tax free online from a vendor in NY, then, yeah, you can be gotten. I believe that I pay sales tax online when I purchase from places here in Texas.
Exactly right! : )
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