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......

New Yorkers are supposed to be honest at tax time and indicate how much they've purchased from online retailers--like Amazon.com--that don't charge NY State sales tax. Now the NY State tax department wants online retailers to charge sales tax, or else be subject to audits going "back as far" as tax officials want. Currently, retailers who have a physical presence in New York are required to pay state and local taxes, not ones who just......