Posted on 05/15/2008 5:40:51 PM PDT by Free ThinkerNY
New York's expansive new online sales-tax requirements are drawing mixed responses from major e-tailers that haven't previously collected such fees in the Empire State.
Despite a pending lawsuit challenging the law's constitutionality, Amazon.com has said on its Web site that it still plans to abide by the law and add sales tax to orders shipped to New York when the mandate kicks in June 1.
But online outlet store Overstock.com wants nothing to do with collecting the new tax, according to reports at the Affiliate Tip blog and The New York Times.
A few weeks ago, New York's governor signed a new law that requires any company that pays New York-based entities for "directly or indirectly referring customers" to its retail business to collect sales taxes from New York-based customers. It's an attempt to get around a 1992 U.S. Supreme Court decision in the Quill v. North Dakota case that says retailers aren't required to collect sales taxes from customers who live in states where the businesses don't have a physical presence.
(Excerpt) Read more at news.com ...
It is completely un-Constitutional and if Amazon had the leadership in place that they should have, they would announce that effective immediately, no orders for NY state would be filled.
I’m the taxman..if you walk on the sidewalk I’ll tax your feet..’cause I’m the taxman...
Nobody is going to pay shipping/handling charges AND sales tax on top of that.
If everyone charges sales tax, then Internet shopping is dead.
(Besides which, taxing Internet sales between states is a tax on interstate commerce, which is forbidden by the Constitution.)
But it’s so lucrative that I don’t think the idiot legislatures will be able to keep their hands off it; which will kill the golden goose before it lays any more eggs.
The NY State DemonRats under Mario Cuomo taxed business so much, many companies left the state. They want to repeat the same mistakes today.
Ditto.
with affiliates dropping, this will cost NY more in the long run. Overstock already said bye-bye to it’s NY affiliates. That’s money.
I will still order from Amazon (and pay the tax), because Amazon is so efficient for me as an online retailer. But consider now with fuel prices going up big time that the delivery of these products, via USPS or UPS or whatever, will also be going up very soon. And NYS government doesn't give a rats a** about that, as long as it can soak its citizens for every penny.
Otherwise, this interstate commerce 'tax' which NYS has just implemented is wholly unconstitutional, and will be dealt with in the courts in due course. When it comes out in favor of the Constitution, I expect to see a nice little fat 'refund' check from the State of New York (PLUS penalty payment) for all the illegally collected sales taxes during the period that this law exists.
You can bet that CA is considering this as well. As it stands, they will likely raise the sales tax by 1%, bringing it up to near 10% in many counties, just to pay the existing deficit. Add in internet for sure, if NY pays off.
Governments are all ready for a flat sales VAT style system. It’s just that they want to keep all the other taxes, and add a few others for saving and investing, too.
If Dems sweep in Nov., it will be like a starting gun going off for new taxes.
It will be like when “Labour” took over the UK in 1997. Taxes, gun confiscation, hate crimes laws, PC madness, even more immigration, the list goes on.
Washington state will start taxing internet sales July 1 this year. Makes me so proud to live here!! And I even have a friend who thinks we don’t pay enough taxes. Some friends you just don’t try and reason with!!
Nah, but there will rollback of unwise tax cuts, increased user fees, temporary surcharges to handle that EVIL Iraq War (like the late unlamented Telephone Excise Tax which lasted 100 years) and so on. Of course people will be surprised to find out how 'rich' they are as the gentleman from New York, Mr Rangel, works the income brackets down.
Does anybody start to miss GWB and the tax CUTS!?
Amazon can stop all sales to NY State residents, that’s the quickest and easiest way to cure the tax zealots in NY State...
But the other poster is right—this sounds like it is a violation of interstate commerce and won’t hold up in court.
And another poster is right- if the prices continue rising, what’s the sense of buying books through the mail...Mailing costs are already exorbitant..
Not sure if either of these 'posters' refers to one of my posts, but just to expand on the fuel prices angle of it:
Fuel prices are going up all around, for 'everybody', individual drivers and delivery services such as UPS and USPS as well ... its only a matter of time before the consumer makes a very simple mathematic economic purchase decision ... "Should I drive x amount of miles, at $4+ gas price, to go to the brick and morter Borders, or should I order it online from Amazon and have UPS deliver it for x amount delivery charge ... either way, I pay the NYS tax"
However this economic purchase decision winkles out, either way the consumer is screwed. Screwed by the greedy state government. Also screwed is the brick-n-morter biz which thought that the gub'mint was socking it to those dastard online merchants with the low prices, but instead it turns out that shoppers will not drive to their stores at $4+ gas prices to get the same item which can be had online.
Everybody gets screwed, and only because of the greed of the state goverment
Yeah, but only the New York State governors and politicians are enjoying it.
Hahahahahaa .. don't even get me started on that! /laughs
... such as this NYC Council 'scandal' which is occurring right now, whereby Council members have a $20 million *plus* "slush fund" which they can 'donate' to any worthy charity of their liking .. totally unaccounted for! Sometimes they 'park' the funds into 'temporary charities' of their own design for a while, before 'dispersing' the funds to said 'charities'.
All this has been going on for ages apparently, and the amusing thing is that nobody in the City Council or even the Mayor's office thinks there is anything wrong with it ... they just shrug and feign being offended that *YOU*, the lowly taxpayer, have the GALL to question accountancy for some $20 million plus .....
Welcome to NY politics! /laughs
A New York City company took over my company last year. If we make a trip to corporate headquarters for ONE day we must file a New York State tax return and pay taxes to New York for the ONE day.
Exactly, and it doesn’t matter a whit to the politicos that jobs growth and opportunity is crushed under that burden, they could care less.
NYC will cease to be if this really does stick, hey, I know, how about a tax on credit car transactions that the major NYC banks handle?
Why not, the principle is the same, if a internet purchase can be taxed, why not the money that moves through those institutions?
This stuff comes at a cost, I’ve heard of the one day rule or one week rule before, how disgusting, why anyone would do business in a town and state such as that is beyond me.
For one’s perusal:
Let me tell you how it will be
There’s one for you, nineteen for me
‘Cause I’m the taxman, yeah, I’m the taxman
Should five per cent appear too small
Be thankful I don’t take it all
‘Cause I’m the taxman, yeah I’m the taxman
If you drive a car, I’ll tax the street,
If you try to sit, I’ll tax your seat.
If you get too cold I’ll tax the heat,
If you take a walk, I’ll tax your feet.
Don’t ask me what I want it for
If you don’t want to pay some more
‘Cause I’m the taxman, yeah, I’m the taxman
Now my advice for those who die
Declare the pennies on your eyes
‘Cause I’m the taxman, yeah, I’m the taxman
And you’re working for no one but me
I live in PA, and I'm sure Rendell will want to try the same thing as NY. He's already trying to turn Rte. 80 into a toll road...
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