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Thu May 1 2008 23:31:42

Amazon Sues NY over Sales-Tax Collection Law

By: Ina Steiner

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New York State enacted a law on April 9 requiring online retailers like Amazon.com to collect sales tax for purchases made by New York residents. Amazon sued New York (and its new governor, Paterson), over what's being dubbed the "Amazon Tax."

New York says Internet retailers like Amazon who have affiliates residing in New York must collect New York sales tax because those affiliates count as a physical presence.

Amazon argues that none of its affiliates has ever been considered an employee, independent contractor, agent, or other representative of Amazon and said the law would apply to on non-Internet out-of-state retailers who pay New York print media, TV or radio outlets to advertiser their products and thereby refer New York customers to buy them.

Note that the law affects companies that do more than $10,000 worth of business in the state.

 




Comments (6) | Permalink

Readers Comments

Amazon Sues NY over Sales-Tax Collection Law   Amazon Sues NY over Sales-Tax Collection Law

by: ny buyer and seller

Fri May 2 06:29:06 2008

We are no amazon fan, with their rigged seller policies, but they correct on this issue.

Amazon Sues NY over Sales-Tax Collection Law   Amazon Sues NY over Sales-Tax Collection Law

by: Amazon Friend

Fri May 2 10:59:41 2008

Amazon is too stringent on their sellers. Holding back fees like Pay Pal does now as well. Ridiculous. But, this suit has been overdue. Actually Amazon is putting it's sellers at risk in NY in that there is no provision for sellers to collect taxes on NY residents/buyers. Amazon is wrong on that aspect. They'll open Pandoras box. Welcome to getting screwed more.

Amazon Sues NY over Sales-Tax Collection Law   Amazon Sues NY over Sales-Tax Collection Law

by: Allow collection of sales tax!

Fri May 2 13:59:02 2008

Amazon doesn't even give you the option to collect sales tax. They say it's a gray area. We are required to collect sales tax for transactions shipped within our state. We collect sales tax on our website and on eBay. Why not Amazon too? Amazon just wants the customers that go there because the customer doesn't have to pay sales tax. The seller is still required to pay the tax and we have to take that out of our profit. Which grows smaller and smaller with all of the fees that we have to pay in addition to having to lower prices because of competition!

Amazon Sues NY over Sales-Tax Collection Law   Amazon Sues NY over Sales-Tax Collection Law

by: Chris Anderson

Sun May 4 07:05:49 2008

Doesn't really surprise me- Pigs get fat, hogs get slaughtered.
I'm an internet entrepreneur, so the tax issue will only become a bigger and bigger issue!

Amazon Sues NY over Sales-Tax Collection Law   Amazon Sues NY over Sales-Tax Collection Law

by: Peter Leeflang/CEO of Leeflang Archives Corporatio

Sun May 4 12:39:10 2008

Amazon, one of the most productive companies in the world, which is one of teh Atalses, which carries our economy and helps us increase our wealth, is being attacked by the envious, the have nots.

With this sales tax, they want to take away that wealth and redistribute it to their fellow have nots.

I'm glad to hear that Amazon is defending itself. With their action they are also defending us, the other businessmen, and even the buyers (who would otherwise have to pay for the added costs accompaning this tax).

BRAVO AMAZON!

PS
If there is anything I can do to help you, Amazon, let me know.

Amazon Sues NY over Sales-Tax Collection Law   Amazon Sues NY over Sales-Tax Collection Law

by: tula

Sun May 4 14:02:27 2008

Peter is absolutely right.  Part of the issue here is about setting precedents when it comes to sales tax issues.  If Amazon loses this, then it opens the door for other states to jump on the bandwagon, making it possible that online retailers will have to collect taxes for every state that has a sales tax.  Some already do this, but smaller retailers who run their own web sites will have a large burden if they have to to implement sales tax collection (and all the associated registrations and paperwork and record keeping) for every single state.

I've been reading these blogs for a while and I have to wonder about all the whining about the fees being charged by sites like eBay and Amazon.  Yes, I too wish that eBay listing fees were lower (or gone), but compare the percentages to what the overhead of running a physical business would be.  You are, in effect, paying rent, utilities, employees, and computer equipment etc....
Sure, it would be nice if it cost us less, but this is the price of doing business on sites that spend the advertising money to get high web traffic for us.  People talk about greed, but they should look at themselves, too.  Wanting something for nothing is not a business plan.

If you aren't happy with an online venue, then leave it.  Simple enough.



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