N.Y. Orders Large Web Retailers To Charge Tax

[GaryC 7]

N.Y. Orders Large Web Retailers To Charge Tax

State Estimates New Rule Will Bring In $50 Million In 2008

Tony Aiello 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."

http://wcbstv.com/technology/ny.internet.tax.2.707820.html

[w¡n9Nµ7 §£@¥€r 123]

NJ has had this law for a while. I know amazon.com still doesn't charge me taxes and I don't bother reporting it to Trenton either.

[cmartyn 0]

NJ has had this law for a while. I know amazon.com still doesn't charge me taxes and I don't bother reporting it to Trenton either.

So, you steal from the government. Nice. You are a theif. Well, not a real theif, your a tech savvy theif like every other on-line shopper.

I reported two large purchases I made last year. Given what the government of NY has been doing (sending out estimates for 10,000.00 at random) I thought it was cheap insurance.

[w¡n9Nµ7 §£@¥€r 123]

Yeah I'm a thief. I use spellchick, too.

[cmartyn 0]

Yeah I'm a thief. I use spellchick, too.

Dang I never use that word Ha Ha.. Its ok, we are all thiefs. Misery loves company.

[w¡n9Nµ7 §£@¥€r 123]

Who's miserable?

[cmartyn 0]

Who's miserable?

Well, we all will be if we get a bill. I hate taxes, not so much sales tax but Income tax is ridiculous. And don't get me started on property tax.

Use taxes on Internet purchases will drive people to small web sites that don’t comply and shipping to states where its not required etc. Another mess if ever there was one.

[mawilson 2,133]

I don't bother reporting Amazon purchases either.

[Fandango 1,440]

if they allow sales via "click-throughs" from New York-based Web sites.

There's the key words, peeps...

[Heracles 417]

State Taxes are inefficient anyway. Wrong century basically..

The country needs to adopt a federal sales tax. GST VAT etc.. I am sure the US loses hundreds of millions in revenue through people buying online in one state yet living in another.