Feeds

New York lawmakers approve 'Amazon Tax'

'A radical departure'

The Power of One Infographic

The New York legislature has approved an ingenious new law that would force Amazon and other big-name online retailers to collect sales tax on all goods shipped to the Empire State.

Last week, the State Legislature approved a $122bn budget, and $50m of that would come from e-tailers who don't maintain New York warehouses or offices.

In accordance with a 1992 Supreme Court case involving an old-school mail order business, American e-tailers are required to collect sales tax only if they have a "physical presence" in the state where a customer resides. Otherwise, the onus is on the customer to declare the purchase on his next tax return - though few remember/choose to do so.

First proposed by former New York Governor Eliot Spitzer - who resigned last month after a federal wiretap caught him with a $1000-a-hour call girl - the new law argues that an e-tailer's physical presence includes "affiliate marketers."

Amazon - which has a rather large affiliate program - has argued that this law "would be a radical departure from anything currently being done in the U.S." And Amazon is right. Nonetheless, Spitzer's replacement, David Paterson, is expected to approve it.

Like Amazon, many customer advocate groups have badmouthed the plan. It would mean customers forking over more tax dollars. But as we've said before: A state has a right to its own taxes. ®

Mobile application security vulnerability report

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.