Online retailers to be required to collect tax?

[Jumpem]

Originally posted by: Twofootputt
Email this morning:

As a result of recent changes in the State of New York Tax Law requiring certain out-of-state retailers to collect and remit sales taxes to the State of New York, we regrettably inform you that Newegg.com must begin collecting applicable state and local sales tax for all orders shipped to New York addresses on or after June 1, 2008.

Qualified business customers can continue to use the Newegg.com Sales Tax Exempt Form.

We value our relationship with you and all of our New York customers. We apologize for any inconvenience caused by this change in New York law and assure you that we will continue to work hard to offer you the best prices, fastest shipping and award winning customer service you deserve.

We look forward to continuing to provide you with the premier online shopping experience for all of your IT and Consumer Electronics needs.

Sincerely,

Bernard Luthi
Newegg.com
Company Spokesperson and
Vice President of Merchandising

F@$#!

 

[EagleKeeper]

Originally posted by: biggestmuff
I never understood how online retailers were able to skip the taxes. I'd rather not pay, but I never understood it. So, why don't you NYers that live close to other state, such as NJ, open up a mail drop-off at one of those Mailboxes'R'Us type of businesses?

Given the cost of fuel, potential tolls and cost of a box rental, how much will have to be ordered to compensate for not paying the sales tax.

 

[pcslookout]

This will soon spread to all states if Amazon looses or even if they win it could still.

 

[KK]

What do you expect from a state that voted for hillary as their senator. When you vote stupidly like that, it's going to screw you. I can imagine what winners they got in their state legislation.

 

[moshquerade]

Originally posted by: KK
What do you expect from a state that voted for hillary as their senator. When you vote stupidly like that, it's going to screw you. I can imagine what winners they got in their state legislation.

<--- didn't vote for Hillary
NY is just a wasteful state. they are constantly looking for ways to put more money in their coffers and then for ways to spend it and then some.

and for those of you who say, well, they should be able to collect taxes on sales, it's to the point of me wanting to go all Boston Tea Party on them. we're over-taxed. for example, each gallon of gas has 32 cents tacked on it for taxes. gimme a break.

 

[Jumpem]

Originally posted by: moshquerade
<--- didn't vote for Hillary
NY is just a wasteful state. they are constantly looking for ways to put more money in their coffers and then for ways to spend it and then some.

and for those of you who say, well, they should be able to collect taxes on sales, it's to the point of me wanting to go all Boston Tea Party on them. we're over-taxed. for example, each gallon of gas has 32 cents tacked on it for taxes. gimme a break.

This is par for the course for a blue state. Too bad that upstate has no voice, and we are forced along by NYC.

 

[moshquerade]

Originally posted by: Jumpem

Originally posted by: moshquerade
<--- didn't vote for Hillary
NY is just a wasteful state. they are constantly looking for ways to put more money in their coffers and then for ways to spend it and then some.

and for those of you who say, well, they should be able to collect taxes on sales, it's to the point of me wanting to go all Boston Tea Party on them. we're over-taxed. for example, each gallon of gas has 32 cents tacked on it for taxes. gimme a break.

This is par for the course for a blue state. Too bad that upstate has no voice, and we are forced along by NYC.

yep. i'm with you.

 

[jjones]

Well, the tax is due the state, but whether it should be online retailers collecting for the state, that is another matter. I have to agree with the case cited above that it is an undue burden to force the retailer to comply with tax collecting for 6,000 plus tax jurisdictions. If you allow one to do it, such as the state of New York, then all 6,000 plus other tax jurisdictions would have similar grounds to force tax collection by online retailers.

 

[Squisher]

The party's over
It's time to call it a day
They've burst your
pretty balloon

And taken the moon away
It's time to wind up

The masquerade
Just make your mind up

The piper must be paid

The party's over
The candles flicker and dim
You danced and dreamed
through the night
It seemed to be right

Just being with him
Now you must wake up
All dreams must end
Take off your makeup
The party's over
It's all over

My friend

You danced and dreamed
through the night
It seemed to be right

Just being with him
Now you must wake up
All dreams must end
Take off your makeup
The party's over
It's all over

My friend

 

[Feldenak]

Originally posted by: ViRGE

Originally posted by: Twofootputt
Email this morning:

As a result of recent changes in the State of New York Tax Law requiring certain out-of-state retailers to collect and remit sales taxes to the State of New York, we regrettably inform you that Newegg.com must begin collecting applicable state and local sales tax for all orders shipped to New York addresses on or after June 1, 2008.

Qualified business customers can continue to use the Newegg.com Sales Tax Exempt Form.

We value our relationship with you and all of our New York customers. We apologize for any inconvenience caused by this change in New York law and assure you that we will continue to work hard to offer you the best prices, fastest shipping and award winning customer service you deserve.

We look forward to continuing to provide you with the premier online shopping experience for all of your IT and Consumer Electronics needs.

Sincerely,

Bernard Luthi
Newegg.com
Company Spokesperson and
Vice President of Merchandising

This needed to happen. Using the internet shouldn't be a way to escape paying your share of taxes. It's not some magical place outside of the real world.

Other than the fact that Fed is the one who regulates interstate commerce.

 

[ViRGE]

Originally posted by: Feldenak

Originally posted by: ViRGE

Originally posted by: Twofootputt
Email this morning:

As a result of recent changes in the State of New York Tax Law requiring certain out-of-state retailers to collect and remit sales taxes to the State of New York, we regrettably inform you that Newegg.com must begin collecting applicable state and local sales tax for all orders shipped to New York addresses on or after June 1, 2008.

Qualified business customers can continue to use the Newegg.com Sales Tax Exempt Form.

We value our relationship with you and all of our New York customers. We apologize for any inconvenience caused by this change in New York law and assure you that we will continue to work hard to offer you the best prices, fastest shipping and award winning customer service you deserve.

We look forward to continuing to provide you with the premier online shopping experience for all of your IT and Consumer Electronics needs.

Sincerely,

Bernard Luthi
Newegg.com
Company Spokesperson and
Vice President of Merchandising

This needed to happen. Using the internet shouldn't be a way to escape paying your share of taxes. It's not some magical place outside of the real world.

Other than the fact that Fed is the one who regulates interstate commerce.

There's nothing magical about interstate commerce. There's a buyer and a seller, they both exist somewhere and need to pay their taxes. If you people don't like sales taxes, then just get rid of the damn things.

 

[Parasitic]

Overstock cuts off NY-based affliates.

lol good job Albany way to hurt the little guys who do business with the big boys.

 

[alkemyst]

Originally posted by: DrPizza

Originally posted by: alkemyst
it's not going to take much for people to now form LLC's in order to buy things tax-free and intend them for 'resale'.

And the first time they get audited, they're screwed.

Yeah..that's another issue entirely. Most will not see the audit, however; if this practice becomes regular I would expect the good old IRS to do so.

Most small businesses will get audited at least once in their lifetimes. My brother was twice. The first was an error on his part...pretty minor but the kicker was they discovered it several years later. With the penalties and interest it added up more than his revenue that year...yet alone his profit for the next 3 years after that one. After that he hired an accountant. He did his own books still, just used him for a confirmation. The accountant actually was more liberal with his recommendations.

The second time he was prepared and everything was spot-on.

When I was a LLC anything I bought online I definitely filed taxes on with the Dept. of Revenue when I sent in my quarterly tax statements.

 

[OBLAMA2009]

why shouldnt companies like amazon have to pay sales taxes. it seems a little unfair to all the businesses that they are putting out of business that have to pay it. why should they be given such a price advantage. the laws need to be updated

 

[sdifox]

Originally posted by: ShotgunSteven

Originally posted by: sdifox
So what happens to me, whom shops from Canada,pay with Canadian CC, ship to a nyc addr (friend's parent's house)?

I suspect you will pay. I live in Alaska, and we have no state sales tax. When I buy from Amazon.Com and it goes to a friend in a state that has sales tax and an Amazon.Com presence, I have to pay tax on it.

bummer...and I am sure they have not setup a mechanism for me to claim it back... bastards.

 

[sdifox]

Originally posted by: OBLAMA2009
why shouldnt companies like amazon have to pay sales taxes. it seems a little unfair to all the businesses that they are putting out of business that have to pay it. why should they be given such a price advantage. the laws need to be updated

You are not getting it. Amazon is not the one required to pay the tax. They are just being forced to collect the tax. Which is undue burden on them because NY has like 4 layers of sales tax.

 

[Tbirdkid]

my only problem with it is that the tax is non negotiable with online retailers, in fact, it is not you the consumer who owes the tax, its the company that owes the tax, then they mark the product up to msrp, and sell it to you plus tax.

you can talk to companies about the cost of the tax, but then you can figure on paying msrp... no matter what, the demand is going to get you to purchase the item, so just be done with it and do it.

the only way to fix it is to turn around and save more money, and stop buying the non necessities, carpool more, and show them that the demand is not there anymore...

 

[IEC]

Originally posted by: moshquerade

Originally posted by: KK
What do you expect from a state that voted for hillary as their senator. When you vote stupidly like that, it's going to screw you. I can imagine what winners they got in their state legislation.

<--- didn't vote for Hillary
NY is just a wasteful state. they are constantly looking for ways to put more money in their coffers and then for ways to spend it and then some.

and for those of you who say, well, they should be able to collect taxes on sales, it's to the point of me wanting to go all Boston Tea Party on them. we're over-taxed. for example, each gallon of gas has 32 cents tacked on it for taxes. gimme a break.

I'd join that tea party. Who wants to bring the guns?

I keed, I keed... well maybe not about the guns part :evil:

 

[alkemyst]

Originally posted by: sdifox

Originally posted by: OBLAMA2009
why shouldnt companies like amazon have to pay sales taxes. it seems a little unfair to all the businesses that they are putting out of business that have to pay it. why should they be given such a price advantage. the laws need to be updated

You are not getting it. Amazon is not the one required to pay the tax. They are just being forced to collect the tax. Which is undue burden on them because NY has like 4 layers of sales tax.

QFT, think before you post son. However I am thinking you are looking to be banned with the avatar and handle.

 

[Hammer]

i knew this was coming eventually. look for a big comeback for the B&Ms. at least we can deduct sales tax now.

 

[ViRGE]

Originally posted by: sdifox

Originally posted by: OBLAMA2009
why shouldnt companies like amazon have to pay sales taxes. it seems a little unfair to all the businesses that they are putting out of business that have to pay it. why should they be given such a price advantage. the laws need to be updated

You are not getting it. Amazon is not the one required to pay the tax. They are just being forced to collect the tax. Which is undue burden on them because NY has like 4 layers of sales tax.

The problem with that is you make taxes voluntary; it's well known that people won't pay taxes if they can get around them, which is why you see so many people on these forums talking about how they never pay their use tax.

Having the seller levy the tax is the only way to ensure the tax is correctly collected. Now this doesn't mean the tax has to be at the buyer's rate however, you could just as well have the tax be levied at the seller's location, similar to how the EU handles VAT.

 

[Orsorum]

Originally posted by: OBLAMA2009
why shouldnt companies like amazon have to pay sales taxes. it seems a little unfair to all the businesses that they are putting out of business that have to pay it. why should they be given such a price advantage. the laws need to be updated

First, Amazon does not pay sales taxes; end consumers do. Amazon merely collects sales tax from its customers and remits it to the appropriate jurisdiction.

The limitation on requiring out-of-state retailers to collect sales and use taxes is a Constitutional limitation. See Jessica69's post above about Quill.

 

[Orsorum]

Originally posted by: QED
I am suprised states have not yet set up a tax-revenue and information-sharing agreement or consortium. Most states currently share information about traffic tickets and such for out-of-state visitors with the visitor's home state, so it makes sense for states to eventually require retailers in their state to report sales to out-of-state customers to their state.

Now that I think about it... there could be some Constitutional hurdles there...

There is such an organization set up, but it's in its infancy. Link

Vendor registration is currently voluntary but with voluntary compliance initiatives that require registration with different states per the SSUTA, for some retailers the multi-state aspect will become a non-issue.

 

[Orsorum]

As a side note, this is a huge issue for online retailers like Newegg and Amazon because most states' sales and use taxes, while imposed on the end consumer, are collectible from the vendor. If the vendor fails to collect, the vendor is still liable for the tax. Thus, for someone like Amazon who has millions of dollars in sales to New York customers, that pesky sales tax issue could equal millions of dollars in tax liability, penalties, and interest, not to mention financial statement issues (think FAS 5 accruals...).

 

[Parasitic]

Originally posted by: Hammer
i knew this was coming eventually. look for a big comeback for the B&Ms. at least we can deduct sales tax now.

We could?