04-14-2008, 09:02 PM
. . .you knew it was coming. . .might set precedent for other online retailers. . .
New York State Girds for War With Amazon
. . .New York State’s novel interpretation of its taxing powers over Internet sales will likely get a test in court.
The New York State legislature has included a provision in the $122 billion budget it passed last week. About $50 million of this is meant to come from a tax on some online retailers.
The law sets a June 1 deadline for out-of-state sellers to register with the state and start collecting taxes. The state is threatening that those companies that don’t comply could be subject to audits and bills for back taxes, according to the New York Post.
The rules about sales taxes are complex. In general, people owe taxes on what they buy regardless of whom they buy it from. But the seller only has an obligation to collect those taxes (and thus the only time taxes are ever actually paid) when the seller has a physical presence in the state of the purchase.
The state is proposing defining Amazon’s affiliates—Web sites that earn commissions by referring customers to it—as a physical presence. Amazon argues that affiliates are not representatives but simply companies that accept advertising from it. It also says that it can’t be expected to figure out all the various permutations of local taxes. . . .
the MISSING LINK to more death by taxes. . .
New York State Girds for War With Amazon
. . .New York State’s novel interpretation of its taxing powers over Internet sales will likely get a test in court.
The New York State legislature has included a provision in the $122 billion budget it passed last week. About $50 million of this is meant to come from a tax on some online retailers.
The law sets a June 1 deadline for out-of-state sellers to register with the state and start collecting taxes. The state is threatening that those companies that don’t comply could be subject to audits and bills for back taxes, according to the New York Post.
The rules about sales taxes are complex. In general, people owe taxes on what they buy regardless of whom they buy it from. But the seller only has an obligation to collect those taxes (and thus the only time taxes are ever actually paid) when the seller has a physical presence in the state of the purchase.
The state is proposing defining Amazon’s affiliates—Web sites that earn commissions by referring customers to it—as a physical presence. Amazon argues that affiliates are not representatives but simply companies that accept advertising from it. It also says that it can’t be expected to figure out all the various permutations of local taxes. . . .
the MISSING LINK to more death by taxes. . .
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I reject your reality and substitute my own!
I reject your reality and substitute my own!
