"Amazon tax" approved in NY state - heads up, New Yorkers! - High-Def Digest Forums
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Old 04-16-2008, 04:53 PM
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Default "Amazon tax" approved in NY state - heads up, New Yorkers!

NY State Approves Amazon Tax....

Bill requires online retailers to collect a sales tax on items purchased by state residents.

It was only a matter of time I guess before one of the states in the Union decided to try and tax the internet. New York State legislators, not alone in a perennial state budget deficit, have decided that the state should start requiring online retailers to collect the sales tax on items they ship there.

Dubbed the "Amazon Tax," the bill is now awaiting the signature of the new governor David Patterson. Considering that he's a Democrat a signature is most likely a mere formality.

"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," said James Sherin, president and CEO of the Retail Council of New York.

Considering that Amazon is really just a huge online Wal-Mart, minus the $2 polos of course, is there really even a retailer playing field left anymore that Wal-Mart hasn't paved?

For its part the state Business Council has voiced its displeasure with the legislation.

"Albany invented the Amazon.com tax because they failed to cut spending," said the council's Heather Briccetti. "As long as they don't recognize the economic reality and continue to increase state spending, they'll keep inventing new taxes like this one."

Amazon plans to fight any plan to make it potentially raise its prices by 8% for NY state customers. The state counters that it and other online retailers could face audits and bills for back taxes going back years unless they agree to start collecting sales tax for the state by June 1.

Either way, the matter won't be settled any time soon.

(from zeropaid.com)
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Old 04-16-2008, 05:02 PM
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Um, that sounds like a state trying to regulate and tax interstate commerce, which is something only the federal government can do. I'm pretty sure the State of New York signed a document called "The Constitution of the United States of America" which says pretty clearly who's job that is.

Besides, their local NY businesses enjoy the same "tax loophole" benefits as they think Amazon does. None of them collect sales tax from customers who are out of state, and this gives them advantages over business located in their customer's home states. Think how much NY businesses like B&H benefit buy selling nationally (and internationally) without collecting tax except in NY?

Don't think this will stand up.

[Edited to add]

I think I read somewhere that they justified this law because Amazon and other out-of-state companies that have affiliate programs (like Amazon Marketplace) are judged by them to have a "physical presence" in New Your State, because surely one of the affiliates is located there. If that is upheld, then Amazon's most likely course of action is to (a) cancel or spin off the affiliate program or (b) remove all affiliates located in New York; both which will punish folks in New York and not hurt Amazon much at all.

Good luck with that.

Last edited by FLskydiver; 04-16-2008 at 05:27 PM.
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Old 04-16-2008, 05:16 PM
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if i have to pay taxes on amazon i'll be buying more on the forums.

Amazon is great for me because i cant stand the damn ny taxes.
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Old 04-16-2008, 05:17 PM
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I really think this is unfair. Tax is high here in Ny, I refused to buy media in stores because of the almost 8% tax. I liked not being charged tax from amazon. I hope Amazon doesnt remove NY affiliates. Well if I use the 2 day shipping and it still gets here in 2 days then no problem really for me.
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Old 04-16-2008, 05:26 PM
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Quote:
Originally Posted by untitled View Post
I really think this is unfair. Tax is high here in Ny, I refused to buy media in stores because of the almost 8% tax. I liked not being charged tax from amazon. I hope Amazon doesnt remove NY affiliates. Well if I use the 2 day shipping and it still gets here in 2 days then no problem really for me.
agreed i dont use any stores for books, dvds, and cds now rarely

i think amazon will fight this but who knows if they'll win. I am sure a big chunk of money for amazon comes from new york shoppers. With tax added i'm pretty sure alot of us would stop using them
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Old 04-16-2008, 05:30 PM
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Quote:
Originally Posted by Clear31 View Post
agreed i dont use any stores for books, dvds, and cds now rarely

i think amazon will fight this but who knows if they'll win. I am sure a big chunk of money for amazon comes from new york shoppers. With tax added i'm pretty sure alot of us would stop using them
You do know that your government wouldn't have to try to pass laws like this if all of you New York state tax cheats would do what you are required by state law to do, and declare your out of state purchases and sales tax liability on your state tax returns, right?
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Old 04-16-2008, 05:37 PM
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Quote:
Originally Posted by FLskydiver View Post
You do know that your government wouldn't have to try to pass laws like this if all of you New York state tax cheats would do what you are required by state law to do, and declare your out of state purchases and sales tax liability on your state tax returns, right?


my uncle handles all my taxes. he works for the irs
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Old 04-16-2008, 05:59 PM
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Quote:
Originally Posted by FLskydiver View Post
"tax loophole"
Quote:
have a "physical presence" in New Your State
If Amazon has a warehouse, sorting facility, or a physical location of any kind in a state, the state reserves the right to charge tax. This goes farther than amazon but any online retailer.

Edit: I pay tax on Amazon already.
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Old 04-16-2008, 06:00 PM
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I'm sure CA will follow suit if this passes.
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Old 04-16-2008, 06:01 PM
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Mod Note: Thread Moved To Appropriate Area.
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