Feeds

New York lawmakers approve 'Amazon Tax'

'A radical departure'

Intelligent flash storage arrays

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. ®

Internet Security Threat Report 2014

More from The Register

next story
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.