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The Independent Budget Office has done a study on that controversial topic--taxing Internet retailers for goods bought in NY State. The IBO suggests the city could earn tens of millions with an Internet sales tax, estimating that $29 million was "lost" between July 2006 and June 2007 on goods brought online. Further, the $2.2 billion of goods bought online last year is taxable, and the city could have made $82 million and the state $91 million. The study say, "In recent years the sales tax has comprised a declining share of total city tax revenues. Rising levels of untaxed Internet sales is likely one of the reasons for this decline." You can read the report here (PDF). And while Governor Paterson is pro-Internet sales tax, Amazon is currently suing NY State.
Study Says Internet Sales Tax Could Bring $82 Million to City
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I've bought less things online, and less in general, since the internet sales tax was instated. >:(
Not pro sales tax. Do I really have go to out of my way to MAIL ORDER so I don't have to deal with that crap? Yeesh.
Funny, I don't see that happening because I bought tons of shit from amazon before and after the tax law have bought zilch. Try taxing zero dollars Patterson! this law is inane.
^ ditto. the tax needs to be repealed and patterson needs to resign.
I got an idea, cut out all the waste that the corrupt assholes in Albany piss into a black hole and we can save tens of millions of tax payer money.
Waaaaaah, I have to pay sales tax on things I buy, waaaaaah.
They better not make it retroactive, is all I can say. I bought plenty on the net, without being aware of sales tax being there or not.
Frankly, if sales tax is added to shipping, I'm through with the net, unless it's for something I absolutely can't find on foot. I'm sick of realizing I'd have to pay over ten dollars to receive a small package that sometimes costs less than the actual shipping!
Amazon has the right to sue the State because they were singled out in the wording of the proposed tax law. That's unconstitutional. This tax law screws everything when it comes to the State's sales and use tax rules. Currently if you purchase something from an out of state business that does not have sales presence in NY you don't pay sales tax. I can't stand people that get hardons over new taxes.
I got a better idea: cut Medicaid (also known as the Ultimate Losers' Program), and the state's financial position will become much better without any new taxes. Everyone wins!
The only tax revenue project that matters in the city is the construction of the new WTC. That will generate up to $5 billion in tax revenue yearly. All of these other tax revenue schemes are noise. Pure annoyance.
I don't even understand how you can tax something which the government does not regulate. They don't have a physical presence in NY. This law is more like "we need money, let's get it from here". This will totally destroy the Longtail theory of internet purchases. The whole point of internet purchases was that it was cheaper than going to a brick and mortar. If they are the same price of course people would go to a brick and mortar than wait 3-10 days for a package. Thanks for killing the internet paterson. Dude's blind physically and mentally. Right now, I'm just buying from internet stores that don't have affiliates in NY so they don't have to pay tax like Newegg.
If the sales tax was not so high maybe people wouldn't buy stuff outside the state.
Newegg just sent out a mailer...they won't be collecting the NY tax anymore.
i love yotsuba...
also, this is bullshit.
This will totally destroy the Longtail theory of internet purchases.
I disagree. The biggest problem with items that are in low demand is the relative high cost of production and storage. Retail stores aren't going to stock low demand items if they don't turn over quickly and they don't have a good gauge of the local market. An internet retailer with national or international reach has access to a much larger pool of potential buyers. People that want obscure items will still want them. They'll just have to pay a little more.
If anything, this will hurt the market for staple items that you can get down street.
takethecanoli, thanks for the good news! Hopefully Amazon will balls up and do the same.
Isn't this taxation without representation?
Also if I buy something from say Canada or the UK over the net what then?
@takethecanoli
Thanks! I didn't get that email, but yea, I bought zilch since the Amazon tax was tacked on to whatever.
YAY. NEWEGG stopped collecting NYS tax today! WOOT WOOT!
Toby - there are import duties you must pay, thus the duty free shops in airports. You ever ship anything over to a different country? You have to declare the cost. Most people fudge the numbers lower so that the receiver doesn't have to pay an exorbitant amount of duty on it.
Regardless of whether the seller charges sales tax, under existing tax law the BUYER is supposed to self-report and pay sales tax on goods. Most people don't.
But with most payments being electronic/credit card, it's probably only a matter of time before the government is able to trace every dollar, so as to more effectively take whatever share it wants from you.
I'm guessing Newegg finally cleaned out all NYS affiliates from their advertising program, so the law can't touch them because they have no presence whatsoever in the state. Wish everybody would do the same. That way, the State only hurts people in NYS who would have otherwise gotten commissions from banner ads. Law of unintended consequences, you Albany jackasses!
Don't worry. There will be a national sales tax in our lifetimes. It's how the government will get the future revenue it gave up with the Roth IRA.