Amazon, NY Governor Battle Over Online Sales Tax

Amazon is fighting the proposal tooth and nail. New York consumers are sure to not support the idea, but local merchants and small business owners think it's about time that online giants like Amazon lose their tax-free advantage.
Spitzer's budget proposal, which includes the online sales tax, faces an uphill battle. As if opposition from online retailers and consumers wasn't enough, law and precedent may not be on his side either. In 1992 the U.S. Supreme Court ruled that states could not force online retailers to collect sales taxes unless they had a physical retail outlet in the state.
New York currently collects sales taxes from online sales from companies with brick and mortar locations in the state.
From AOL Money & Finance
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Comments
62
Subscribe to commentsoutriderFeb 13th 2008 10:57PM
Lawyers already control a third of the government. Can we really expect them not to follow their gut instinct and training when they they get power outside the judiciary? Think about that on election day!
sharonFeb 15th 2008 6:29AM
why shouldnt amazon NOT pay taxes? Just another way of big business getting away from paying their fair share. And dont tell me they HAVE to pass it on to the consumers. Thats the oldest crock around! Amazon probably, by now, owes millions and millions in taxes, that alone would help offset the ecominic stimulus package.
nahaldFeb 15th 2008 6:37AM
We are only taxed on online purchases in New Jersey if the company maintains a physical presence in the state. That's the only fair way to do it. If this goes through it will affect people in every state. Let New York sucker their people into paying more taxes a different way.
zeuspeiFeb 15th 2008 7:18AM
Sharon, this has NOTHING to do with Amazon paying taxed.. It isn't Amazon that pays the tax, it is you and I (if we live in NY) it is the consumers in NY that have to pay the tax.. read the article!
YIKES DYKESFeb 15th 2008 7:26AM
SPITZER NEEDS TO BE VOTED OUT OF OFFICE. THIS ISN'T PROGRESSIVE THINKING,,,IT'S INSANITY AND GREED BY ANOTHER PUBLIC OFFICIAL.
charlieFeb 15th 2008 8:37AM
give the state goverment more money to waste here in maine we pay for 12 year olds bith control and give them out in middle school
PaulFeb 15th 2008 8:09AM
Well nobody cared when these states went after tabbacco, because they didn't smoke. Here you go!
It's a big game of how much can we get away with.
Here in MA they used a consumer protection law suit to get the names of people who used E-Smokes.
Then used that info to sent tax bills to the same people who were "decieved". Don't steal the Govt hates competion. Sooner or later they will get to something you DO care about.
BugFeb 15th 2008 8:16AM
If Amazon went in and put a store in every state, like Sears or JC Penny's then everyone where a physical store is located would have to pay the taxes, NOT Amazon.
All Amazon would be doing is the same thing every other business does, collect the taxes from the people and turn around and send the money WE sent them to the government on our behalf.
joyFeb 15th 2008 8:33AM
I live in NY and because of the high sales taxes (along with high property taxes, and cost of living here) use online merchants for most of my shopping. Items are already marked up in the stores, and then we have to pay tax on top of it. Money doesn't go as far in NY. The governor has had many "insane" ideas to raise revenue (let illegal imigrants get drivers licenses). Lets hope Amazon holds its ground!
drdarbyFeb 15th 2008 9:41PM
Sharon that is a very stupid comment. If this was only Saturday night live! They are talking sales taxes and these are always paid by the customer. You are either not reading the article or you are a ignorant liberal on the taxpayer tit.
Amazon pays more than it's fair share of taxes and shareholders pay double taxation. Get fact before you sprew off with your mouth like you are spitting out cum from your latest BJ
dintyFeb 15th 2008 9:15AM
New York State citizens now pay about 48 per cent more in taxes than the national average, thanks to the morons who vote in people like Spitzer.
hlsjogrenFeb 15th 2008 8:58AM
IF NY WOULD LEAGLIZE GAMBLING AND HAVE CASINOS WE HAVE ALL THE MONEY FROM TAXES THERE WOULD NO STATE TAXES JUST LIKE NAVADA. WE ARE TAXED TO DEATH. GOVERMENT GIVE UP YOUR BIG, OFF THE CHART RAISES. SO, WE, YOUR PEE-ONS CAN HAVE A WEEKEND OFF WITH OUR FAMILY INSTEAD OF WORKING TO PAY FOR OUR FOOD,HEATING FUEL, AND GAS FOR THE CAR TO GET US TO WORK. WE NEED A BREAK. NOW!!!!!!!!!!!!!
Ron HaaseFeb 15th 2008 9:09AM
Amazon DOES pay its fair share of taxes on ALL its retail sales in its own state. If Amazon collected taxes in New York YOU the buyer would pay them just like you do now at any other store in your state.
BquiverfulFeb 15th 2008 9:12AM
Amazon DOES pay its fair share of taxes on ALL its retail sales in
its own state. If Amazon collected taxes in New York YOU the buyer
would pay them just like you do now at any other store in your state.
gus gusFeb 15th 2008 9:22AM
So, if your rich and can afford a computer, you can make your purchases on-line and save on the tax but if your part of the working poor who can't afford the internet, you have to go to a store and buy the same thing and pay sales tax to boot. Does that really seem fair??
AggieFeb 15th 2008 9:23AM
I do hope Amazon wins this one. Tell, our governor to collect his tax money fron the Oneida Indians and their TAX FREE casino and all their other businesses they run.
DworplyFeb 15th 2008 9:30AM
It's not amazon who pays the tax you tards, it's the consumer.
DworplyFeb 15th 2008 9:34AM
I have to wonder about anyone who supports any new tax. Everything costs too much for the average working person as it is, taxes generally don't go away when short sighted people support them. We shouldn't be incouraging waistful government to grow it's beuoracracy, we should be holding them accountable for how they are spending our current money and force them into being more efficient. Why put additional tax burdens on the consumer?
FOXYLYNXFeb 15th 2008 9:42AM
I LIVE IN NY AND THE SALES TAX IS 8.25% MY PROPERTY TAXES ARE 7000.00/YEAR FOR A HOME WORTH ABOUT 235,000 AND MY HEATING BILLS ARE HIGH, GAS HERE IS STILL 3.21/GAL AND THE LIST GOES ON AND ON. SOON I WILL SELL THIS PLACE AND MOVE OUT OF NY - JUST LIKE MOST OF MY FRIENDS HAVE. THEY TAX YOU TO DEATH AND GIVE YOU LESS AND LESS AND LESS. WHEN THEY CUT TAXES THE LOCAL GOVERMNET JUST RAISES THEIRS.
Dan from NYFeb 15th 2008 10:32AM
Mr Spitzer is spending more money than he can generate from basic taxes. This year he intends to sell "tax stamps" to illegal drug dealers. If you buy crack or heroin as the "consumer" you best make sure there is a NY tax stamp on it. Yea - sure.
Last year Spitzer included in his budget $300M from Indian sales of cigarettes, however he had no means of collecting that money, so last years budget was short that $300M. Oh, by the way he included $400M this year and has no means to collect.
Also Spitzer wants to sell the NYS lottery to investment groups. He will get a huge one shot cash influx, but for the next 40 years our children and grandchildren will not see any income from the lottery.
Someone mentioned casinos. We allow the native american Indians to run the casinos. The state income is ONLY 25% of the profits from the slots, nothing from table games, etc. In Buffalo the Indians are going to build a $330M hotel/casino. Guess what, they dont pay any property tax on that facility. If NY were to legalize gambling and let The Donald build that facility it would go on the tax roll. Spend a night at the hotel or eat a meal in the restaurant - no sales tax. In Buffalo the sales tax is 8.75% and the room tax is 13.75%. What a loss of income for the state and local governments. If only the casinos were not built on sovereigh land.
And people wonder why companies are moving out of the state. Soon the only peopl eworking will be public sector.