Newegg Reverses Decision to Collect New York Sales Tax

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mav100

As a long term employee of the NY State Department of Taxation and Finance, I applaud Newegg for their stance.

They do not have a NY State nexus, so as is my understanding, there is no reason for them to collect sales tax from NY State customers. This is what we employees have been taught for the decade and a half I've been there. No nexus = no responsibility to collect sales tax...

Basically, the politicians in our state have spent way too much money, and are now looking for new sources of revenue. I say that's just too bad. Cut back on some of your pork.

I look forward to Newegg, Amazon, and Overstock bitchslapping my employer and putting the politicians back in their place.

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Tekzel

Hold onto your hats!  Revolutionary idea incoming!  Instead of finding new ways to tax, why don't those useless leeches on the public we like to call "politicians" find new ways to not waste money hand over freaking fist.  Its like they burn the stuff, or wipe their butts with it.  I have no idea how they waste so much so quickly, but they manage it.  If they can curb their enthusiasm for spending other people's money just a little bit I bet they will find they have way more than enough.

Oh, yea.  Taxes are a necessary evil.  But its just a question of how much.  

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orlanthrex

I second that motion! 

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chaos.13037

All I want is newegg to come to Canada already! Come on guys we need some tough competition up here!

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Wildebeast

Sales taxes are taxes on commerce, for which they don't want to raise commercial property or income taxes, because It'd have to be a massive hike, to make up the governments' revenue.  Large employers frequently re-locate something like a corporate HQ, to take advantage of tax breaks...

I don't think there should be any sales tax, at all --because sales revenue pays employee's paychecks, which goes into the community the the business is in.  I'm sure we're all aware of people who make a "run," across a border, to avoid extra sales taxes or charges in their home town.

It's ironic, that an internet sales tax makes more sense than the sales tax on the newpaper at the corner convenience store... the justification (as I've heard it) has always been "the government needs to pay for the local infrastructure that makes the transaction possible..."

Does any part, of any government, support a Steam-type internet sale?  In any way ??? 

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Da Man

Last time I checked Newegg did not have any warehouses in New York, and their caveat "affiliate/referral" clause where if someone in the state posts on a link on their website has a flimsy foundation legally and clearly attempts to enforce New York state law on other state governments. The 1992 Supreme Court ruling that concluded
that a business must have a physical presence in a state in order to be
responsible for collecting sales tax on purchases shipped there, is the only Supreme Court ruling on this matter, so NJ, TN and CA residents have been paying tax since. In this case luckily Amazon and Overstock will be leading the charge on the challenge vs NY and I'm excited to have this extremely unconstitutional law overturned, as I'm sure NewEgg will hop on the 10th amendment defense bandwagon. Overall I think the guidelines will be clear in the end, if a warehouse/shop exists in the same state you live, you pay tax. If it doesn't then the state is out of luck unless the Feds decide to move to a national sales tax and scrap each states tax, which I doubt will happen anytime soon.

Overall...Go NewEgg!

 

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PhynaeusClaw

I want to know what will happen when the the NYS Attorney General's office knocks on the door at Newegg and asks to see their info regarding sales in NYS. Will Newegg give it up, thereby throwing its NY customers under the bus, or will it tell Cuomo and his croney's to take a hike??

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royboy81

the wife is director of sales tax at a major retailer, she pretty much says it's inevitable and the states will win... newegg is making a mistake to go back on their policy; they would likely lose a court case...

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DePat

Giving up before the fight!! Let's the court decide, based on the laws and constitution, instead of a state appetite for dollars.

 

DePat

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Da Man

Not to offend your wife, but she should read the 10th amendment, this is the basis for Amazon, Overstock and now NewEgg's fight against this amendment to the New York State Sales tax law. Unless a national sales tax is put in place to replace state sales tax, or the 10th amendment is modified I do not think the states will win on this one, but hey you never know, your wifey can call me a loser if I'm wrong! ha...all in good fun....

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Talcum X

 Sales tax, especailly over the web out of state, does not.

Time for another 'tea party'  We are well overdue for another revelutionary war.

***********

Every morning is the dawn of a new error.

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dwr50

All the states with high taxes just waste the money anyway.

 

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Techrocket9

How do we feel? What do you think??? Who wants to pay sales tax?

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