Last week Governor Paterson signed off on a new tax law requiring out-of-state retailers to collect sales tax from consumers in New York State. Like other states, New York requires residents to pay tax on out-of-state purchases for which sales tax wasn’t collected. The big argument is over who’s responsible for collecting; the new law puts that onus vendors like Amazon, which is now fighting the bill in State Supreme Court.
What’s interesting is that the new bill hinges on some legal legerdemain that would make John Yoo proud: The law claims that Amazon does have a presence in New York because of all the websites with in-state address that link to Amazon for a referral fee – links like this! And lawmakers say it doesn’t even matter that there are hundreds of thousands of these affiliates (there are); even if there was only one, Amazon would have to collect taxes on transactions from all New Yorkers.
Amazon insists the law is “overly broad and vague,” because how are they supposed to figure out which of their myriad affiliates are in New York? The company equates the referral fees to ads, and goes further to call it unconstitutional because, by specifically targeting Amazon when they drafted the bill, lawmakers violated the “equal protection clause.”





That didn't take long. I knew Paterson would sign something that would tick me off sooner or later; it's the nature of any government. But so soon after taking office? The honeymoon's over. Every once in a while, I daydream that Moscow would fly a little nuke over to Albany.
I hope Amazon wins.
I hope Amazon wins.
Yeah, me too. I have my eye on a new 50 inch plasma and why should I have to pay any tax on it? Taxes are for poor people that don't use the internet!
is it too much to ask that they cut so many redicukoius programs and jobs before they come around again to pick my pockets? NYS+NYC taxes take a bigger bite out of your salary than any place in the nation, throw in the high property taxes, sales taxes, cell taxes, etc, etc if you pay them and you have to ask when is enough enough?!
This is a really dangerous precedent if it happens. The Internet as a global commerce tool will lose a lot.
apologize for not spell/grammar checking my last post, LOL. I needed to vent. ;-)
The Supreme Court has made it clear that a mail-order vendor must have a physical presence in a state in order to be required to collect sales taxes on shipments into that state, and the reasoning applies equally well to Internet vendors.
It's a huge stretch of the imagination to claim that these Amazon affiliates give the company a physical presence in NYS.
this is such fucking bullshit! I live at amazon.com. I get like 5 packages a day from them. Amazon has helped me so much. Everyday I don't have to wait in a huge line and talk to some minimum wage jerk is a godsend. Amazon has helped me become the coldhearted anti-social bastard I am today. I'm dreading having to talk to regular plebians again if this bill ever goes through. I think this bill is prejudicial against smart people who don't want to wait in line and save money and time.
aren't you guys already paying internet purchase taxes on your NYS tax return?
has anyone been audited for putting nothing on that line?
First they came for the smokers - and I said nothing.
Then they came for the fatties - and I remained silent.
Now they've come for the internet consumer.
I agree with Kissel and Peter on this one.
Well... the money for a new state hooker has to come from somewhere!
#10 Yeah, but the smokers and fatties had it coming to them.
I had no idea I wasn't paying taxes on my online orders. I just pay and wait for the package. Why should it be my problem if people don't charge sales tax when they should?
And if online orders are going to be more expensive (has anybody noticed that practically everybody that's not Amazon charges like 20 bucks for delivery on the smallest items?), I'm going to have to cut down on my online ordering. It'll be cheaper to just buy in a brick and mortar shop.
Peter is probably right - it seems like a stretch to say that Amazon has a physical presence in NY based on its affiliates.
The Supreme Court case dates from the late 1960s and hinged on the constitutionality of states to regulate interstate commerce through taxation. In a 1991 decision upholding the earlier decision Stevens said Congress could easily delegate the power to collect sales tax across state lines to the states. In either case I doubt the the Court was anticipating the scale of untaxed commerce that now exists. It's asinine to have some purchases taxed and others untaxed. Anyway, I fully expect a national sales tax in about 15 to 20 years as an end run on the Roth IRA.
Yeah, me too. I have my eye on a new 50 inch plasma and why should I have to pay any tax on it? Taxes are for poor people that don't use the internet!
If this isn't overturned, poor people are the ones who will be hit the most. Those who are well-off enough to hop in their SUVs and go to New Jersey and Connecticut will continue to do so and enjoy tax-free or lower tax rate-shopping.
Why doesn't New York State finally throw down and tax China? Tax Saudi Arabia? Tax those cell phones they're selling in Cuba? There has to be a NYS connection, right? Go collect!
I'll probably be audited for this post, but I hope Amazon wins. I liked buying tax-free books.
I found out about the whole cruddy situation because I tried to buy a shirt on Bluefly and was a mere click away from being charged... sales tax. For CLOTHING!
What gives?! My shipping address is in Brooklyn. I don't have to pay sales tax on clothing here, why should I online all of a sudden. Tax-free clothing, as we all know, is one of the only* financial perks of living in this city.
*Hmm..possibly it is THE only one. I can't think of another.
I live in NY and our leaders in Albany are getting Desperate! We have so many crooked politicians skimming off tax money for their own use, not to mention all the entitlement programs to pay for that the poor fellows are running out of sources of income. We have almost the highest tax's in the country and our moronic politicians just can't figure out why all the business's are packing up and leaving the state. Our Gasoline tax is right up there on top but our Politicians don't care because they fill their state issued SUV's with OUR money. I'm going to love seeing the courts rule in Amazon.com's favor but then our Governor Patterson is going to have to come up with another tax scheme, and he's taxing just about everything now!
HREagle
Let's move his furniture around... and watch the dope walk into things... LOL
Put your sunglasses back on... you're freaking me out, shitbag.