Newegg Reverses Decision to Collect New York Sales Tax

Nothing is worse than when the government decides to levy another tax someplace. Newegg customers of New York were irked on June 1, 2008 when they found out that Newegg was being required to collect sales tax to orders sent to New York, even though Newegg doesn’t have a store there.

However, Newegg has backed away from that stance, sending out an email from Newegg Company Spokesperson and Vice President of Merchandising, Bernard Luthi, saying that it reversed it’s decision based on feedback from it’s customers.

“This decision was driven by your direct and candid feedback and our continued commitment to you as our valued customers.” He went on to thank customers for their patience as they worked things out.

Of course, New York residents are still responsible for paying their sales tax.

Newegg should be applauded for taking a stand. Collecting taxes for different states, counties, and localities would be a terrible mess for any online retailer to wade through. It would only serve to drive up prices for consumers and stifle internet commerce.

How do you feel about taxes on items purchased over the web?