NY Judge: Amazon Should Pay NY State Sales Tax

2009_01_amtax.jpg Last May, Amazon.com sued NY State over Governor Paterson's new law requiring out-of-state retailers to collect sales tax from consumers in New York State. NY requires residents to pay tax on out-of-state purchases for which sales tax wasn’t collected, but the argument is over who should collect it—and the new law would make Amazon responsible. Yesterday, State Supreme Court Judge Ellen Bransten dismissed Amazon's lawsuit, as well as one from Overstock.com, finding, "The neutral statute simply obligates out-of-state sellers to shoulder their fair share of the tax collection burden when using New Yorkers to earn profit from other New Yorkers." This could be headed to the Court of Appeals, should the online retailers wish to pursue it. And Paterson offered other tax ideas last month.

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boooooooooooooooooo. But I guess it's okay now that the state needs the money.

I swear, Paterson's going to nickel and dime New York to death. Nice going, Paterson. You've made me swear off Amazon for now. On the bright side, I guess this will keep me from going on shopping sprees. I'm saving money, Amazon's not getting it, NYS isn't getting sales tax. Great economic stimulus plan, Paterson.

this is the only tax that's ever hurt me bad. I used to get 5-10 packages a day from amazon and my doorman thought I was running a business. Now, amazon is lucky if they even get 3 packages of business from me a month. It's newegg all day and night now.

no problem because I don't shop at Amazon and Buy anymore. They have lost me as a customer. Newegg and overstock is getting my money now.

Amazon should put a server farm on an indian reservation and give Paterson the big middle finger.

I'll just ship to my office or family/freinds in NJ.

Then they'll have to collect the NJ Tax. All internet providers should charge the sales tax of the state they're shipping to. They create tax havens at the expense of the people of those states. Sales taxes in general are unfair to the poorer people. The alternative is a national value added tax but it will never happen.

It will happen someday. A VAT is how the government will get the revenue they miss out on from Roth IRAs.

"We contend that for a nation to try to tax itself into
prosperity is like a man standing in a bucket and trying
to lift himself up by the handle."

Winston Churchill

Yet we keep voting for the party of higher taxes.

this is why craigslist and it's grey market will boom in the coming years. actually, this is a good opportunity to get in there.

The headline should read "...Amazon Should Collect NY State Sales Tax," not "pay." Vendors don't pay sales taxes, purchasers do. Vendors collect the taxes for the government.

Technically, of course, this doesn't change the tax liabilities of New Yorkers at all. We're already required, if we make a purchase from Amazon, a vendor on an Indian reservation, or anywhere else where sales tax is not collected, to declare that each year and make the payment.

I know I always do!

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