Posted on 04/25/2008 3:00:04 PM PDT by jonyyeh
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.)
Chuckie and the other socialists raise their very ugly heads -— TAXATION. Right out of Lenin.
New York is easily the MOST screwed up state in the union.
I still say this violates the Constitution, Art I Sec 9.
I hate when the best Estore happens to be in TX because I have to pay tax. Hmmm..Texas?Taxes?
The difference is the U.S. Constitution empowers congress to tax interstate sales, not New York. Next stop: Federal court.
N.Y. Orders Large Web Retailers To Charge Tax...
Large Web Retailers Not to make any further sales in NY!!!
A company cannot be forced to collect sales tax outside of it's physical location.
Not that I doubted you or anything, but this statement goes a long way in support of what you said.....IMO.
"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.
I don't understand this bit. Can't I simply move my servers to New Jersey and circumvent this?
Jersey still is.
AOL just moved to NY, would this mean all AOL users would pay a NY tax for their purchases?
“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.
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That’s not fair. But I have a simpler solution. New York stops charging sales tax, and cuts back services.
except for California, New Jersey, Louisiana and Massachussets.?
That is a wonderful opportunity for the smaller web retailers.
Just saying.
No matter where you moved, this tax will be instituted in your state, soon. Thanks, New York.
Pardon my ignorance, but I thought technically companies are only required to PAY sales tax, which they pass on to customers. Isn't a store free to forgo collecting sales tax as long as it still pays the state?
California is working very hard to "catch up" to New York. Give us another few years and we will get there.
How about $75 million and $150 million losses? More likely.
What's that definition of insanity again?
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