Fond Memories Of Tax-Free Internet Shopping!
Saturday, July 19th, 2008People love buying online and one reason is the freedom from sales tax. Looks like things are about to change and soon we will be telling our children and grandchildren of the “good old days” when there were no taxes online.
Tax-hungry politicians are attempting to force Amazon.com to collect sales taxes from people that reside out of the state. If this really happens, Amazon.com is only the beginning and all other online retailers will have to follow suit. People then will only be left with fond memories of days when it was easy to order items over the internet without having to pay any sales taxes.
Currently, if someone residing in California orders an item from Amazon.com, which is based in Seattle, there is no sales tax charged at the time of the purchase. The reason is because Amazon has no offices in California. There is a long-standing rule that says a retailer must have a physical presence to be able to collect taxes.
However, politicians who are pro sales taxes are trying to find ways to circumvent this rule and New York State has recently succeeded in getting an approval by legislators that says Amazon and other online retailers that have no physical presence in the state, should collect sales tax on purchases made by New Yorkers.
Amazon is not willing to take this lying down and is all set for a legal battle, and as a first step has sued the State of New York. It challenged the new statute by filing a complaint in the Supreme Court of the State of New York, that the new law was vague, unconstitutional, and too broad. (more…)