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Court: New York can tax Amazon, other online purchases
It looks like the era of tax-free purchases from web based stores could be coming to an end. A while back, the state of New York decided it could raise a bit of much-needed revenue by collecting tax from online retailers. Generally states can only collect taxes if those retailers have a bricks and mortar presence in the region. But New York figured out an interesting way around that - it decided that advertising affiliates counted as a physical presence. In other words, as long as at least one New York State resident made money by placing Amazon ads on his or her web site or blog, New York could collect taxes.And now it looks like the New York state Supreme Court agrees with that logic. Amazon and Overstock.com had sued the state over the law, and Newegg had decided just to stop collecting taxes. This week's ruling could change all of that.
This could be the beginning of the end for tax-free online purchases. Or it's possible that we could see Amazon, Newegg, Overstock.com, and similar web retailers kill their affiliate ad programs in order to stay competitive with companies that don't have to charge tax in states like New York.
It's worth noting that most states do actually require citizens to pay taxes on items purchased online. It's just that you're supposed to report those purchases voluntarily on your annual tax returns. And almost nobody does this. What's new about New York's law is that it requires the retailers to collect taxes.
[via Alley Insider]
Comments
25
Subscribe to commentsJeffrey C.Jan 13th 2009 6:21PM
People living in the U.S.A. are so lucky..., you guys have one of the best living standards in the world, world-class public infrastructures(even China copies you), you have one of the free-est societies where poor people can actually make it and become rich(and not holded back by some system of social classes like India), mostly tolerant environment (instead of Shiite vs Sunnis or Tutsis vs. Hutus where one's living purpose is the destruction of the other tribe, as in the Middle East or African Countries like the dark ages....)
I wish where i live had bigger and same-sized roads everywhere i go, i wish i had more security where the police wouldn't bribe & rob you as a way of life, i wish the social security system actually worked, i wish the criminals couldn't buy their way out of a crime....
I WISH ALL THEY TAX I PAID COULD make this country where i live A BETTER PLACE, instead of being stolen by politicians with no public service minds...
To make my point a living proofed one, i suggest you try living a few days in Monterrey Mexico, the most amerizanized city(rich) in the country compared to the mostly poor cities, you'll see the devastation the corruption have brought to a city fairly near the US border, the chaos, no rule of of Law, how everything is about the money...even when a traffic accident is not your fault, need to "contribute" to ease the police "fatigue a.k.a. their work....
Be grateful for what you have: Social Security, a LAW system that works, Public Infrastructure like water and drainage, Even-Widthed Roads, Bridges, Traffic Signals, Traffic Lights, Pedestrian Curves, Building Zoning Laws, Urban Planning ....
Because what you have simply is a PRIVILEDGE and NOT a right !!!
Jeffrey C.Jan 13th 2009 6:21PM
P.S. : It is common sense that most governments are NOT the best money managers around, but at least the US Government does it better than others, truly for the people, instead of some corrupt government, that takes all your hard-earned money and gives you NOTHING BACK !!!
World Human Rights Chapter of the U.N. says you have a right to a house, GAZA have houses too!! Human rights says you are entitled to education, ETHIOPIA have schools too!! Human rights says you should go thru a due process before being convicted, VENEZUELA have judges too!!
Again, what the Americans have, is a PRIVILEDGE and NOT a right !!!
Be thankful that you live in that country, be grateful that your TAXES ARE AT WORK !!!
Jeffrey C.Jan 13th 2009 6:24PM
One U.S. College Educated Foreigner's Humble Opinion.
CHEJan 14th 2009 10:41AM
4get about taxes thats the last thing to worry about..the system is Fd Up, the federal reserve is a joke, our money has no value anymore. read the fine print!
gamezone360.comFeb 28th 2009 10:07PM
Yes, we do benefit from taxes and we should pay but Gosh! The government doesn't have to tax every little thing that exist. We are already pay enough taxes. Leave online retailing alone!
-Cleona-
http://www.dealio.com