N.Y. Orders Large Web Retailers To Charge Tax

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

[walkman]

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.

[wcbstv.com...]

[trinorthlighting]

What everyone is failing to realize (To include the media) is that publically traded companines, Ebay, Amazon, etc... are all traded where? The New York State stock exchange. That gives the State of New York some very good power and some legal reach.
If you own a .com and you are a New York State resident, now New York considers you to have a Nexxus in the State even if you do not have a physical presence in the State besides your self and your computer.

Watch and wait.... Something will happen real quick as New York will try to make an example against a larger .com

It will be very interesting once things unfold in Federal court.

[walkman]

where they are traded does not seem to be relevant, unless I am missing something. If you have affiliates in NY, then you must pay.

[trinorthlighting]

Yes, you are missing a critical point, it is just not affiliates. All it takes is one New York State resident that is considered an "online agent". Now what constitutes an "online agent"? Well the law is very vague. It could be interpreted as a New York State Ad sense publisher that display's advertisements on a blog that goes to an ecommerce site. It could be Froogle/Google Base feeds since Google has employees in New York, it could be Yahoo Stores, EBay Power Sellers etc....

Here is another good quote from another media article:

"The state has sent notices to the 500 largest e-tailers in the state, saying they have to register and begin collecting sales taxes by June 1."

[newsday.com...]

Lets all hope that the larger .com's challenge this law, because if they do not, it could open pandora's box and all states will start passing laws on collecting sales taxes.