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Will Amazon.com Force New York To Start Paying Sales Tax?
Technically, New Yorkers are already supposed to declare purchases made on the Internet through sites like Amazon when they file their income taxes, but many people do not know that and even more do not actually pony up. Now, Gov. Eliot Spitzer is reviving a proposal to force Amazon.com and other Internet companies that do not have a physical presence in the state to collect sales taxes for purchases made from New York.
Amazon has had a competitive advantage over other online retailers, like Barnes & Noble or Wal-Mart, that also have stores in New York and therefore must collect sales taxes. It’s a good bet, though, that the issue would be tied up in court if a law requiring sites like Amazon to collect sales tax were enacted, with a challenge centering on whether federal laws regarding interstate commerce would supersede the state measure.
“It’s already been said that people are going to challenge it,” Paul E. Misener, Amazon’s vice president for global public policy, said in an interview last week while he visited Albany to try to beat back the measure.
He said a law would “undoubtedly” be challenged.
SOURCE: NYTimes.com
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