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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Reader Comments (Page 1 of 4)
outrider @ Feb 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!
sharon @ Feb 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.
nahald @ Feb 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.
zeuspei @ Feb 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 DYKES @ Feb 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.
Paul @ Feb 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.
Bug @ Feb 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.
joy @ Feb 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!
charlie @ Feb 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
hlsjogren @ Feb 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 Haase @ Feb 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.
Bquiverful @ Feb 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.
dinty @ Feb 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.
gus gus @ Feb 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??
Aggie @ Feb 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.
Dworply @ Feb 15th 2008 9:30AM
It's not amazon who pays the tax you tards, it's the consumer.
Dworply @ Feb 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?
FOXYLYNX @ Feb 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.
bpiscopo89 @ Feb 15th 2008 9:52AM
Give it a BREAK! If all the state money went where it's suppose to instead of the governments pockets maybe the less fortunate people could live better!
Joe @ Feb 15th 2008 9:53AM
MORTGAGE INDSTURY EXPOSED!!!
http://mortgage-alert.blogspot.com