“Amazon Tax” Soon to Become Reality in New York
It was only a matter of time before states began making moves to level the retail playing field when it comes to online stores. Barring "campaign support" from brick and mortar establishments, this of course has less to do with fair trade and more to do with squeezing cash from every possible avenue. Brainchild of fallen hooker-loving ex-Governor Eliot Spitzer, New York legislators approved a bill last week that if signed by newly-instated cocaine and weed-loving Governer David Paterson, would force online retailers to collect state sales tax on all sales delivered to New York addresses. Paterson is expected to sign the bill. Currently, online retailers are only required to collect sales tax on purchases shipped to states in which they have physical operations. A quote from James Sherin, president CEO of the Retail Council New York:
"This is a first step, but a critical one, in our ongoing battle to level the sales tax playing field between New York retailers and the out-of-state Internet giants that have, for years, capitalized on an unfair and unintended competitive advantage driven solely by tax policy."
It seems logical that businesses should collect sales taxes in states where they makes sales, but the bill treads into muddy waters with regards to interstate taxes and how they should apply to online retailers. While the bill will certainly be met with strong opposition from the likes of Amazon, it is also expected to amount to an additional $50 million in tax revenue for New York State this fiscal year alone. Once other states catch a whiff of the potential cash slipping through their fingers each year, expect many to follow suit and implement similar policies.
On Apr 12, 2008 @ 2:56 pm, Galvatron Said:
bass ackwards ths is no wonder som nay companys ar moving elseware.
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On Apr 12, 2008 @ 3:00 pm, gadgetchic Said:
the main reason i shop at amazon is because of the lack of taxes… ugh i’ll be so pissed if this goes through.
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On Apr 12, 2008 @ 3:20 pm, wesrubix Said:
The government has every right to tax the sales of an internet store so long as the store has a corporate presence in the state to which the delivery is made. That’s how Dell’s and Lenovo’s taxes work.
If Amazon has a corporate presence in NY, then NY delivered sales should be taxed accordingly should the government request such from Amazon.
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On Apr 12, 2008 @ 3:21 pm, mingkee Said:
I think it’s about time to move out
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On Apr 12, 2008 @ 3:22 pm, wesrubix Said:
Ok I just read on BGR the “Amazon tax bill” actually is beyond just Amazon.com, it’s proposing tax on any internet retailer transactions whose deliveries end up in the state, EVEN IF THAT RETAILER IS NOT PRESENT IN THE STATE!
Not ok.
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On Apr 12, 2008 @ 3:24 pm, kirkrr Said:
I disagree. This amounts to taxation without representation. Last time I checked, there were something like 7,193 tax zones in the US. Unless I have the right to vote in each of these tax zones, these entities have no legal right to collect taxes from me.
This battle has already been fought and won. The US Supreme court ruled, some 20+ years ago, when the mail order industry was fighting the same problem, that, unless you have a physical sales presence in the tax zone, then no taxes can be collected.
I agree that at some point, something must be done about internet commerce taxation, but it will have to come in the form of a national sales tax, or some other radical reform of the tax code.
If not, another Boston tea party is on the horizon.
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On Apr 12, 2008 @ 3:41 pm, Jordan Brown Said:
I shop online because usually the price is better even without tax taken into account. And mostly where else are you going to go if you cant find it in store?
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On Apr 12, 2008 @ 4:10 pm, Adam Said:
From what I understand, this will not apply to all Internet business. Only those with a online sales-presence within NY state. The loophole for the state is that Amazon has its Associates program which allows website users to monetize traffic they direct to Amazon.com. If that associate’s traffic purchases product, they receive a cut. If the owner of that website is within NY, NY considers this a point of sales presence within the state and is subject to this sales tax legislation.
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On Apr 12, 2008 @ 4:18 pm, Glenn Said:
Sucks to be you. We have no sales tax in Delaware. But it’s not as great as it sounds because there is nothing more annoying than going out of state to buy something and the price says $4.99 but you end up paying like $5.28. God that sucks. I don’t know how you people get use to that.
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On Apr 12, 2008 @ 5:09 pm, Galvatron Said:
this is crap he’s an idea NY stae stop being a fracking ploice state all that police force reiqire an asload of tp reenue this is one reson why people aere fleeing newjwersy th uber high taxes ther ar fleeing to othere states like massachusets sounds lik NY is nex on thelist
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On Apr 12, 2008 @ 5:50 pm, Xavier Said:
unless all states do this, i see a problem. people will just have items shipped to neighboring states. i’ll just have things shipped to jersey or connecticut and never pay the taxes.
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On Apr 12, 2008 @ 11:36 pm, ppcmd Said:
Typical NY Gov’t attitude about taxes. We give away hundreds of millions of dollars each year under our Empire Zone program and most of these companies never deliver on their agreements, yet collect the tax breaks. Some of these companies simply reincorporated their business and voila were credited. Some of our esteemed legislators even did this with their law practices. Disgusting politics at its best. If this goes through as a New Yorker my Amazon days are over, but I will find other online retailers that do not collect taxes.
Hey NY Legislators here’s an idea tax the other illegal enterprise that the Supreme Court ruled must pay taxes yet Governor Pataki & Spitzer BOTH ignored it. Collect from that Casino and other business theres hundreds of millions of dollars that we can get plus more.
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On Apr 13, 2008 @ 12:03 am, galvatron Said:
tsk ther only lik 5 other stes that do this AZ is not one of them
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On Apr 13, 2008 @ 7:03 am, Michaelsviews Said:
Once again here in NY we get Fked, and the politicians just run there mouths and saying there doing the best they can and all that BS. Keep telling the wife its time to move. Now we have will hopefully have a better government since prince elliot is OUT.
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On Apr 13, 2008 @ 10:22 am, asaiz1 Said:
If i start seeing things being taxed from websites that i wanted to buy something from then i guess i will start shopping locally again:(
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On Apr 13, 2008 @ 2:43 pm, aa Said:
Galvatron - what language are you typing your comments in?
I’d say “mostly english” would be the best description…but I can’t really tell.
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On Apr 13, 2008 @ 3:26 pm, kisha Said:
this is outrageous. i’m a big online shopper that lives in NYC. I Hope that governor Patterson does NOT sign that bill. If that bill goes in effect, do you know how much tax AND shipping would be on an $300 order? oh dear god NO!
& if it does go in effect, I agree with Xavier. i’ll just have my things shipped to another state. NY tax is too damn high - almost 9%
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On Apr 13, 2008 @ 10:07 pm, Hinano Said:
Does anyone know when and if this will go into effect? I really want to know because I’ve been saving up to buy a cell phone on amazon and if this is going to really go into effect I’m gonna buy it tomorrow!! @_@
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On Apr 13, 2008 @ 10:47 pm, lol Said:
RE: picture….
that’s what she said! =D
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On Apr 14, 2008 @ 12:03 pm, ryang Said:
picture comment:
Spitzer: “I got in about THIS far before I creamed. . .WELL worth the $5k”
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On Apr 14, 2008 @ 1:02 pm, johdaxx Said:
Heh - doesn’t it seem like this would just push people to buy from overseas instead?
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On Apr 14, 2008 @ 1:10 pm, Kyle Said:
More and more, it seems like it is time to leave this state. I can almost deal with NJ at this point even though I hate NJ. At least I’ll be free from the bullshit “NYC” tax for the privilege to live here. *roll eyes*
And I thought all the bad ideas came from California.
Hopefully, what Adam said is true and it’s just to tax certain loopholes in the system.
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On Apr 14, 2008 @ 2:40 pm, Hinano Said:
I got so worried I bought the phone anyway
N95 here i come!
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