New York intends to do away with the tax free net

A state that will never be known fro low taxes or careful government spending may also be known for the state that killed the internet tax free zone. Most states require sales tax to be collected if the etailer has a physical presence in the state. As it is proposed, not in New York. If successful, other states will soon follow suit.

Governor David Paterson is expected to approve it. The new bill is called the “Amazon Tax” and it closes a loophole for online retailers who get sales through affiliate programs. A lobbying group representing local retailers argued that the previous exemption created an unfair advantage for online retailers.

“This is a first step—but a critical one—in our ongoing battle to level the sales tax playing field between New York retailers and the out-of-state Internet giants that have, for years, capitalized on an unfair and unintended competitive advantage driven solely by tax policy,” James Sherin, president CEO of the Retail Council New York, said in a statement reacting to the bill’s passage. (Gadgetell)

What the New York legislators are too stupid to realize is that large states like New York actually benefit from the sales tax moratorium, as sales are also made to buyers in other states by New York etailers, creating a tax free balance , and most likely a gain in New York’s case. We live in an era where the reach of government from the feds to local extends too far into our lives, along with the taxes to support it. While I contend New York has experienced a net gain in revenue from on line sales, any opportunity to de-fund the monster should not be passed on. I hope New Yorkers will see the light and cry foul before a small tax free zone disappears for them. Any complaining retailers can fix their alleged problems by developing an online presence. Failure to keep up with changes in the marketplace has nothing to do with an unfair tax advantage.