New York drops plan for ‘Amazon tax’

Governor Eliot Spitzer is backing off plans to require the collection of state and local sales taxes on Amazon sales to buyers in New York.

From the New York Sun:

Yesterday, just hours after The New York Sun reported on the new revenue collection scheme, the Spitzer administration announced that it was burying it for the time being — at least until after the Christmas shopping season. The move saved New York City shoppers from having to pay an additional 8.375% on many Amazon.com goods.

What was he thinking? Proposing a big new shopping tax in mid-November? Keep it up, Governor Grinch, and your Christmas present might be a voter recall.

Spitzer was already in hot water for his idea to issue drivers licenses to undocumented immigrants. He dropped that hot potato too after a hail of criticism this week.

Currently Internet merchants are required to charge state sales tax only for buyers in their state. The rationale is that merchants should collect tax only where they have a physical presence.

Spitzer argued that Amazon’s affiliate program (where Web sites display links to Amazon books and earn a small commission) constituted a “sales force” in New York, so all the transactions to buyers there should be taxable.

This entry was posted in Uncategorized and tagged . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

2 Comments

  1. Anonymous
    Posted November 19, 2007 at 3:12 pm | Permalink

    “How” are we suppose to collect Sales tax when there is no place on any online sites template?

    I have been taking my own sales tax out of the ‘handling’ portion of my Sh/H amount. On Amazon, where they are taking a portion of that already in the fees portion (leaving me approximately $2.33 to work with), I often get nothing to ship the item.

    Also collecting anything more from the online buyer can totally destroy both repeat customers, and who wants their feedback to get anhilated?

    Still, I don’t want any trouble with the state as I am also a brick and mortar.

    Debbie K.

  2. Anonymous
    Posted November 21, 2007 at 8:10 pm | Permalink

    Steve, I have to quibble with something you said. What’s with the term, “undocumented immigrants”? Let’s please call them what they are. They are illegal immigrants. They crossed the border illegally or came on a plane flight on a visitor visa and did not leave.

Post a Comment

Your email is never published nor shared.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

  • Archives

  • Meta